|   | 1. | High quality, long-life assets – ARC’s unique suite of assets include both growth and base assets. ARC’s growth assets consist of world-class resource play properties, primarily concentrated in the Montney geological formation in northeast British Columbia and northern Alberta, and the Cardium formation in the Pembina area of Alberta. These assets provide substantial growth opportunities, which ARC will pursue to create value through long-term profitable development. ARC’s base assets consist of core properties located throughout Alberta, Saskatchewan and Manitoba. The base assets deliver stable production and contribute significant cash flow to fund future development and support ARC's dividend. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Operational excellence – ARC is focused on capital discipline and cost management to extract the maximum return on its investments while operating in a safe and environmentally responsible manner. Production from individual oil and natural gas wells naturally declines over time. In any one year, ARC approves a budget to drill new wells with the intent to first replace production declines and second to potentially increase production volumes. At times, ARC may also acquire strategic producing or undeveloped properties to enhance current production and reserves or to provide potential future drilling locations. Alternatively, it may strategically dispose of non-core assets that no longer meet its investment criteria. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Financial flexibility – ARC provides returns to shareholders through a combination of a monthly dividend, currently $0.10 per share per month, and a potential for capital appreciation. ARC’s goal is to fund capital expenditures necessary to replace production declines and dividend payments using funds from operations (1). ARC will finance value creating activities through a combination of sources including funds from operations, proceeds from ARC’s Dividend Reinvestment Program (“DRIP”), reduced funding required under the Stock Dividend Program ("SDP"), proceeds from property dispositions, debt capacity, and if necessary, equity issuance. ARC chooses to maintain prudent debt levels, targeting its net debt to be one to 1.5 times annualized funds from operations and less than 20 per cent of total capitalization over the long-term (1). |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Top talent and strong leadership culture – ARC is committed to the attraction, retention and development of the best and brightest people in the industry. ARC’s employees conduct business every day in a culture of trust, respect, integrity and accountability. Building leadership talent at all levels of the organization is a key |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 1 |
|--------------------|---|

----

| (1) | Funds from operations, net debt, and total capitalization are additional GAAP measures which may not be comparable to similar additional GAAP measures used by other entities. Refer to the section entitled “Additional GAAP Measures” contained within this MD&A. Also refer to the "Funds from Operations" section within this MD&A for a reconciliation of ARC’s net income to funds from operations and cash flow from operating activities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Total Returns (1)                                                         |   | Trailing One Year |   |   | Trailing Three Year |   |   | Trailing Five Year |   |
|---------------------------------------------------------------------------|--------|-------------------|--------|--------|---------------------|--------|--------|--------------------|--------|
| Dividends per share ($)                                                   |   |              | 1.20   |   |                |   | 3.60   |               |   |   | 6.00 |   |
| Capital appreciation (depreciation) per share ($)                         |   |              | (4.41  | )      |                |   | 0.06   |               |   |   | 5.22 |   |
| Total return per share (%)                                                |   |              | (11.4  | )      |                |   | 14.9   |               |   |   | 60.4 |   |
| Annualized total return per share (%)                                     |   |              | (11.4  | )      |                |   | 4.7    |               |   |   | 9.9 |   |
| S&P/TSX Exploration & Producers Index annualized total return (%) |   |              | (22.1  | )      |                |   | (7.7   | )                  |   |   | (6.2 | ) |

| (1) | Non-GAAP measure which may not be comparable to similar non-GAAP measures used by other entities. Refer to the section entitled "Non-GAAP Measures" contained within this MD&A. Calculated as at December 31, 2014. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | 2014   |    |   | 2013   |   |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Production (boe/d)                                |   |   | 112,387 |   |   |   | 96,087 |   |   |   | 93,546 |   |   |   | 83,416 |   |   |   | 73,954 |   |
| Daily production per thousand shares (1)          |   |   | 0.35    |   |   |   | 0.31   |   |   |   | 0.31   |   |   |   | 0.29   |   |   |   | 0.28 |   |
| Proved plus probable reserves (mmboe) (2)(3)(4)   |   |   | 672.7   |   |   |   | 633.9  |   |   |   | 607.0  |   |   |   | 572.4  |   |   |   | 485.1 |   |
| Proved plus probable reserves per share (boe) (5) |   |   | 2.1     |   |   |   | 2.0    |   |   |   | 2.0    |   |   |   | 2.0    |   |   |   | 1.8 |   |

| (1) | Daily production per thousand shares represents annual average daily production divided by the diluted weighted average common shares for the respective years ending December 31. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | As determined by ARC’s independent reserve evaluator solely at December 31. |
|-----|-----------------------------------------------------------------------------------|

| (3) | ARC has also disclosed contingent resources associated with interests in certain of its properties located in northeastern British Columbia in ARC’s Annual Information Form as filed on SEDAR at www.sedar.com. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Company gross reserves. For more information, see ARC’s Annual Information Form as filed on SEDAR at www.sedar.com and the news release entitled “ARC Resources Ltd. Announces 210 Per Cent Produced Reserves Replacement in 2014” dated February 11, 2015. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Per share amounts are based on weighted average shares, diluted. |
|-----|------------------------------------------------------------------|

| ARC Resources Ltd. | 2 |
|--------------------|---|

----

| Selected Benchmark Prices and Exchange Rates (1) |   | Three Months Ended |   |   | Twelve Months Ended |   |
|--------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                                             |   | December 31        |   |   | December 31         |   |
|                                             |   | 2014               |   |   | 2013                |   |   | % Change |   |   | 2014 |   |   | 2013 |   |   | % Change |   |
| Brent (US$/bbl)                                  |   |               | 77.07  |   |                |   | 109.35 |   |   |   | (30 | ) |   |   | 99.45 |   |   |   | 108.70 |   |   |   | (9 | ) |
| WTI oil (US$/bbl)                                |   |               | 73.20  |   |                |   | 97.61 |   |   |   | (25 | ) |   |   | 92.91 |   |   |   | 98.05 |   |   |   | (5 | ) |
| Edmonton Par (Cdn$/bbl)                          |   |               | 75.65  |   |                |   | 86.64 |   |   |   | (13 | ) |   |   | 94.46 |   |   |   | 93.16 |   |   |   | 1 |   |
| Henry Hub NYMEX (US$/mmbtu) (2)                  |   |               | 4.00   |   |                |   | 3.60 |   |   |   | 11 |   |   |   | 4.41 |   |   |   | 3.65 |   |   |   | 21 |   |
| AECO natural gas (Cdn$/mcf)                      |   |               | 4.01   |   |                |   | 3.15 |   |   |   | 27 |   |   |   | 4.42 |   |   |   | 3.16 |   |   |   | 40 |   |
| Cdn$/US$ exchange rate                           |   |               | 1.14   |   |                |   | 1.05 |   |   |   | 9 |   |   |   | 1.10 |   |   |   | 1.03 |   |   |   | 7 |   |

| (1) | The benchmark prices do not reflect ARC's realized sales prices. For average realized sales prices, refer to Table 13 in this MD&A. Prices and exchange rates presented above represent averages for the respective periods. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | NYMEX Henry Hub "Last Day" Settlement. |
|-----|----------------------------------------|

| ARC Resources Ltd. | 3 |
|--------------------|---|

----

|                                                                                  |   | 2015 Guidance (3)(4) |              |   | 2014 Guidance |   |              | 2014 YTD |   |   | % Variance |   |
|---------------------------------------------------------------------------------------|--------|----------------------|-------------------|--------|---------------|--------|-------------------|----------|--------|--------|------------|--------|
| Production                                                                            |   |                 |              |   |          |   |              |     |   |   |       |   |
| Crude oil (bbl/d)                                                                     |   |                 | 37,000 - 39,000   |   |          |   | 35,000 - 37,000   |     |   |   | 36,525     |   |   |   | — |   |
| Condensate (bbl/d)                                                                    |   |                 | 3,800 - 4,300     |   |          |   | 3,500 - 3,800     |     |   |   | 3,667      |   |   |   | — |   |
| Natural gas (mmcf/d)                                                                  |   |                 | 445 - 460         |   |          |   | 405 - 415         |     |   |   | 406.1      |   |   |   | — |   |
| NGLs (bbl/d)                                                                          |   |                 | 4,700 - 5,100     |   |          |   | 4,200 - 4,500     |     |   |   | 4,518      |   |   |   | — |   |
| Total (boe/d)                                                                         |   |                 | 120,000 - 125,000 |   |          |   | 110,000 - 114,000 |     |   |   | 112,387    |   |   |   | — |   |
| Expenses ($/boe)                                                                      |   |                 |              |   |          |   |              |     |   |   |       |   |   |   |   |   |
| Operating                                                                             |   |                 | 8.80 - 9.30       |   |          |   | 9.00 - 9.40       |     |   |   | 8.88       |   |   |   | (1 | ) |
| Transportation                                                                        |   |                 | 2.00 - 2.20       |   |          |   | 2.00 - 2.20       |     |   |   | 2.23       |   |   |   | 1 |   |
| G&A (1)                                                                           |   |                 | 2.00 - 2.30       |   |          |   | 2.20 - 2.40       |     |   |   | 2.06       |   |   |   | (6 | ) |
| Interest                                                                              |   |                 | 1.10 - 1.30       |   |          |   | 1.10 - 1.20       |     |   |   | 1.15       |   |   |   | — |   |
| Current income tax (per cent of funds from operations) (2)                            |   |                 | 0 - 8             |   |          |   | 6 - 8             |     |   |   | 6          |   |   |   | — |   |
| Capital expenditures before land purchases and net property acquisitions ($ millions) |   |                 | 750               |   |          |   | 975               |     |   |   | 945.5      |   |   |   | (3 | ) |
| Land purchases and net property acquisitions ($ millions)                             |   |                 | —           |   |          |   | —           |     |   |   | 96.5       |   |   |   | N/A |   |
| Weighted average shares, diluted (millions)                                           |   |                 | 339               |   |          |   | 317               |     |   |   | 317        |   |   |   | — |   |

| (1) | The 2014 guidance for G&A expenses per boe was based on a range of $1.45 - $1.55 prior to the recognition of any expense associated with ARC’s long-term incentive plans and $0.75 - $0.85 per boe associated with ARC’s long-term incentive plans. Actual per boe costs for each of these components for the year ended December 31, 2014 were $1.44 and $0.62 per boe, respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The 2014 and 2015 corporate tax estimates will vary depending on level of commodity prices. Current income tax is quoted as a percentage of funds from operations before tax. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | 2015 production guidance does not take into account the impact of any dispositions that may occur during the year. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (4) | 2015 guidance is under review and will be updated for reduced capital spending with ARC's first quarter 2015 results. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 4 |
|--------------------|---|

----

|                                           |   | Three Months Ended |    |   | Twelve Months Ended |   |
|------------------------------------------------|--------|--------------------|---------|--------|---------------------|--------|
|                                           |   | December 31        |    |   | December 31         |   |
| ($ millions, except per share and volume data) |   | 2014               |    |   | 2013                |   |   | % Change |   |   | 2014 |   |   | 2013 |   |   | % Change |   |
| Funds from operations (1)                      |   |               | 251.7   |   |                |   | 237.8 |   |   |   | 6 |   |   |   | 1,124.0 |   |   |   | 861.8 |   |   |   | 30 |   |
| Funds from operations per share (1)(2)         |   |               | 0.79    |   |                |   | 0.76 |   |   |   | 4 |   |   |   | 3.54 |   |   |   | 2.76 |   |   |   | 28 |   |
| Net income and comprehensive income            |   |               | 113.7   |   |                |   | 13.6 |   |   |   | 736 |   |   |   | 380.8 |   |   |   | 240.7 |   |   |   | 58 |   |
| Operating income (3)                           |   |               | 64.5    |   |                |   | 50.0 |   |   |   | 29 |   |   |   | 390.3 |   |   |   | 224.9 |   |   |   | 74 |   |
| Dividends per share (2)                        |   |               | 0.30    |   |                |   | 0.30 |   |   |   | — |   |   |   | 1.20 |   |   |   | 1.20 |   |   |   | — |   |
| Average daily production (boe/d) (4)           |   |               | 117,986 |   |                |   | 100,883 |   |   |   | 17 |   |   |   | 112,387 |   |   |   | 96,087 |   |   |   | 17 |   |

| (1) | Refer to the sections entitled "Funds from Operations" and “Additional GAAP Measures” contained within this MD&A. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (2) | Per share amounts (with the exception of dividends per share, which are based on the number of shares outstanding at each dividend record date) are based on weighted average shares, diluted. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Non-GAAP measure which may not be comparable to similar non-GAAP measures used by other entities. Refer to the section entitled "Non-GAAP Measures" contained within this MD&A. Also refer to the "Operating Income" section within this MD&A for the definition of operating income and a reconciliation of ARC’s net income to operating income. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Reported production amount is based on company interest before royalty burdens. |
|-----|---------------------------------------------------------------------------------|

| ARC Resources Ltd. | 5 |
|--------------------|---|

----

|                                                                             |   | Three Months Ended |    |   | Twelve Months Ended |   |
|----------------------------------------------------------------------------------|--------|--------------------|---------|--------|---------------------|--------|
|                                                                             |   | December 31        |    |   | December 31         |   |
| ($ millions)                                                                     |   | 2014               |    |   | 2013                |   |   | 2014 |   |   | 2013 |   |
| Net income                                                                       |   |               | 113.7   |   |                |   | 13.6 |   |   |   | 380.8 |   |   |   | 240.7 |   |
| Adjusted for the following non-cash items:                                       |   |               |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| DD&A and impairment                                                          |   |               | 279.4   |   |                |   | 157.0 |   |   |   | 758.5 |   |   |   | 551.9 |   |
| Accretion of ARO                                                                 |   |               | 3.7     |   |                |   | 3.1 |   |   |   | 14.9 |   |   |   | 12.5 |   |
| Intangible E&E expenses                                                      |   |               | 9.5     |   |                |   | 1.3 |   |   |   | 39.4 |   |   |   | 1.3 |   |
| Deferred tax expense                                                             |   |               | 23.5    |   |                |   | 15.1 |   |   |   | 59.1 |   |   |   | 77.9 |   |
| Unrealized loss (gain) on risk management contracts                              |   |               | (212.6  | )      |                |   | 27.8 |   |   |   | (205.3 | ) |   |   | (30.6 | ) |
| Unrealized gain on risk management contracts recognized in previous quarters (1) |   |               | — |   |                |   | (5.0 | ) |   |   | — |   |   |   | — |   |
| Unrealized loss on foreign exchange                                              |   |               | 32.7    |   |                |   | 24.8 |   |   |   | 73.8 |   |   |   | 48.9 |   |
| Loss (gain) on disposal of petroleum and natural gas properties                  |   |               | (0.1    | )      |                |   | 0.4 |   |   |   | 1.8 |   |   |   | (38.9 | ) |
| Other                                                                            |   |               | 1.9     |   |                |   | (0.3 | ) |   |   | 1.0 |   |   |   | (1.9 | ) |
| Funds from operations                                                            |   |               | 251.7   |   |                |   | 237.8 |   |   |   | 1,124.0 |   |   |   | 861.8 |   |
| Unrealized gain on risk management contracts recognized in previous quarters (1) |   |               | — |   |                |   | 5.0 |   |   |   | — |   |   |   | — |   |
| Net change in other liabilities                                                  |   |               | 0.4     |   |                |   | (2.3 | ) |   |   | (20.4 | ) |   |   | (16.6 | ) |
| Change in non-cash working capital                                               |   |               | 39.1    |   |                |   | (19.6 | ) |   |   | 49.4 |   |   |   | (43.5 | ) |
| Cash flow from operating activities                                              |   |               | 291.2   |   |                |   | 220.9 |   |   |   | 1,153.0 |   |   |   | 801.7 |   |

| (1)  | ARC enters into certain commodity price risk management contracts that pertain to production periods spanning the entire calendar year but that are settled at the end of the year on an annual average benchmark commodity price.Throughout the year, ARC has applied the portion of gains or losses associated with these contracts to the funds from operations calculation in the production period to which they relate to more appropriately reflect the funds from operations generated during the period after any effects of contracts used for economic hedging. At December 31, all gains and losses associated with these contracts have been realized, and in the fourth quarter gains or losses previously applied to all prior quarters are reversed. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 6 |
|--------------------|---|

----

|                                                                             |   | Three Months Ended |    |   | Twelve Months Ended |   |
|----------------------------------------------------------------------------------|--------|--------------------|---------|--------|---------------------|--------|
|                                                                             |   | December 31        |    |   | December 31         |   |
|                                                                             |   | $ millions         |    |   | $/Share (1)         |   |   | $ millions |   |   | $/Share (1) |   |
| Funds from operations – 2013                                               |   |               | 237.8   |   |                |   | 0.76 |   |   |   | 861.8 |   |   |   | 2.76 |   |
| Volume variance                                                                  |   |               |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil and liquids                                                            |   |               | 37.1    |   |                |   | 0.12 |   |   |   | 214.8 |   |   |   | 0.69 |   |
| Natural gas                                                                      |   |               | 24.2    |   |                |   | 0.08 |   |   |   | 71.4 |   |   |   | 0.23 |   |
| Price variance                                                                   |   |               |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil and liquids                                                            |   |               | (53.5   | )      |                |   | (0.18 | ) |   |   | 3.2 |   |   |   | 0.01 |   |
| Natural gas                                                                      |   |               | 21.3    |   |                |   | 0.07 |   |   |   | 194.0 |   |   |   | 0.62 |   |
| Realized gain or loss on risk management contracts                               |   |               | 15.9    |   |                |   | 0.05 |   |   |   | (44.8 | ) |   |   | (0.14 | ) |
| Unrealized gain on risk management contracts recognized in previous quarters (2) |   |               | 5.0     |   |                |   | 0.02 |   |   |   | — |   |   |   | — |   |
| Royalties                                                                        |   |               | (3.2    | )      |                |   | (0.01 | ) |   |   | (74.9 | ) |   |   | (0.24 | ) |
| Expenses                                                                         |   |               |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Transportation                                                                   |   |               | (10.3   | )      |                |   | (0.03 | ) |   |   | (31.4 | ) |   |   | (0.10 | ) |
| Operating                                                                        |   |               | (7.3    | )      |                |   | (0.02 | ) |   |   | (25.5 | ) |   |   | (0.08 | ) |
| G&A                                                                          |   |               | (1.4    | )      |                |   | (0.01 | ) |   |   | 13.8 |   |   |   | 0.04 |   |
| Interest                                                                         |   |               | (1.6    | )      |                |   | (0.01 | ) |   |   | (4.8 | ) |   |   | (0.02 | ) |
| Current tax                                                                      |   |               | (12.7   | )      |                |   | (0.04 | ) |   |   | (54.0 | ) |   |   | (0.17 | ) |
| Realized gain or loss on foreign exchange                                        |   |               | 0.4     |   |                |   | — |   |   |   | 0.4 |   |   |   | — |   |
| Diluted shares                                                                   |   |               | — |   |                |   | (0.01 | ) |   |   | — |   |   |   | (0.06 | ) |
| Funds from operations – 2014                                               |   |               | 251.7   |   |                |   | 0.79 |   |   |   | 1,124.0 |   |   |   | 3.54 |   |

| (1) | Per share amounts are based on weighted average shares, diluted. |
|-----|------------------------------------------------------------------|

| (2) | ARC enters into certain commodity price risk management contracts that pertain to production periods spanning the entire calendar year but that are settled at the end of the year on an annual average benchmark commodity price.Throughout the year, ARC has applied the portion of gains or losses associated with these contracts to the funds from operations calculation in the production period to which they relate to more appropriately reflect the funds from operations generated during the period after any effects of contracts used for economic hedging. At December 31, all gains and losses associated with these contracts have been realized, and in the fourth quarter gains or losses previously applied to all prior quarters are reversed. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 7 |
|--------------------|---|

----

|                                                 |   | Assumption |   |   | Change |   |   | Impact on Annual Funds from Operations(6)$/Share |   |
|------------------------------------------------------|--------|------------|--------|--------|--------|--------|--------|--------------------------------------------------|--------|
| Business Environment (1)                             |   |       |   |   |   |   |   |                                             |   |
| Crude oil price (US$ WTI/bbl) (2)(3)                 |   |       | 92.91  |   |   |   | 1.00   |                                             |   |   | 0.033 |   |
| Natural gas price (Cdn$ AECO/mcf) (2)(3)             |   |       | 4.42   |   |   |   | 0.10   |                                             |   |   | 0.029 |   |
| Cdn$/US$ exchange rate (2)(3)(4)                     |   |       | 1.10   |   |   |   | 0.01   |                                             |   |   | 0.026 |   |
| Interest rate on floating-rate debt (2)              |   |       | 2.7    | %      |   |   | 1.0    | %                                                |   |   | 0.003 |   |
| Operational                                          |   |       |   |   |   |   |   |                                             |   |   |   |   |
| Crude oil and liquids production volumes (bbl/d) (5) |   |       | 44,710 |   |   |   | 1.0    | %                                                |   |   | 0.027 |   |
| Natural gas production volumes (mmcf/d) (5)          |   |       | 406.1  |   |   |   | 1.0    | %                                                |   |   | 0.013 |   |
| Operating expenses ($/boe) (5)                       |   |       | 8.88   |   |   |   | 1.0    | %                                                |   |   | 0.009 |   |
| G&A expenses ($/boe) (5)                         |   |       | 2.06   |   |   |   | 10.0   | %                                                |   |   | 0.023 |   |

| (1) | Calculations are performed independently and may not be indicative of actual results that would occur when multiple variables change at the same time. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Prices and rates are indicative of published prices for the year ended December 31, 2014. See Table 13 of this MD&A for additional details. The calculated impact on funds from operations would only be applicable within a limited range of these amounts. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Analysis does not include the effect of risk management contracts. |
|-----|--------------------------------------------------------------------|

| (4) | Includes impact of foreign exchange on crude oil, condensate, and NGLs prices that are presented in US dollars. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (5) | Operational assumptions are based upon results for the year endedDecember 31, 2014. |
|-----|-------------------------------------------------------------------------------------|

| (6) | Refer to the sections entitled "Funds from Operations" and “Additional GAAP Measures” contained within this MD&A. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 8 |
|--------------------|---|

----

|                                                                             |   | Three Months Ended |    |   | Twelve Months Ended |   |
|----------------------------------------------------------------------------------|--------|--------------------|---------|--------|---------------------|--------|
|                                                                             |   | December 31        |    |   | December 31         |   |
| Operating Income($ millions, except per share amounts)                           |   | 2014               |    |   | 2013                |   |   | 2014 |   |   | 2013 |   |
| Net income                                                                       |   |               | 113.7   |   |                |   | 13.6 |   |   |   | 380.8 |   |   |   | 240.7 |   |
| Add (deduct) non-operating items:                                                |   |               |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized loss (gain) on risk management contracts                              |   |               | (212.6  | )      |                |   | 27.8 |   |   |   | (205.3 | ) |   |   | (30.6 | ) |
| Unrealized gain on risk management contracts recognized in previous quarters (1) |   |               | — |   |                |   | (5.0 | ) |   |   | — |   |   |   | — |   |
| Intangible E&E expenses                                                      |   |               | 9.5     |   |                |   | 1.3 |   |   |   | 39.4 |   |   |   | 1.3 |   |
| Unrealized loss on foreign exchange                                              |   |               | 32.7    |   |                |   | 24.8 |   |   |   | 73.8 |   |   |   | 48.9 |   |
| Loss (gain) on disposal of petroleum and natural gas properties                  |   |               | (0.1    | )      |                |   | 0.4 |   |   |   | 1.8 |   |   |   | (38.9 | ) |
| Impairment on PP&E                                                           |   |               | 103.0   |   |                |   | — |   |   |   | 103.0 |   |   |   | — |   |
| Gain (loss) on short-term investment                                             |   |               | 1.5     |   |                |   | (0.4 | ) |   |   | — |   |   |   | (1.9 | ) |
| Income tax associated with non-operating items                                   |   |               | 16.8    |   |                |   | (12.5 | ) |   |   | (3.2 | ) |   |   | 5.4 |   |
| Operating income                                                                 |   |               | 64.5    |   |                |   | 50.0 |   |   |   | 390.3 |   |   |   | 224.9 |   |
| Operating income per share, diluted                                              |   |               | 0.20    |   |                |   | 0.16 |   |   |   | 1.23 |   |   |   | 0.72 |   |

| (1) | ARC enters into certain commodity price risk management contracts that pertain to production periods spanning the entire calendar year but that are settled at the end of the year on an annual average benchmark commodity price.Throughout the year, ARC has applied the portion of gains or losses associated with these contracts to the funds from operations calculation in the production period to which they relate to more appropriately reflect the funds from operations generated during the period after any effects of contracts used for economic hedging. At December 31, all gains and losses associated with these contracts have been realized, and in the fourth quarter gains or losses previously applied to all prior quarters are reversed. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 9 |
|--------------------|---|

----

|                               |   | Three Months Ended |    |   | Twelve Months Ended |   |
|------------------------------------|--------|--------------------|---------|--------|---------------------|--------|
|                               |   | December 31        |    |   | December 31         |   |
| Production                         |   | 2014               |    |   | 2013                |   |   | % Change |   |   | 2014 |   |   | 2013 |   |   | % Change |   |
| Light and medium crude oil (bbl/d) |   |               | 36,276  |   |                |   | 34,556 |   |   |   | 5 |   |   |   | 35,467 |   |   |   | 31,929 |   |   |   | 11 |   |
| Heavy oil (bbl/d)                  |   |               | 1,166   |   |                |   | 986 |   |   |   | 18 |   |   |   | 1,058 |   |   |   | 855 |   |   |   | 24 |   |
| Condensate (bbl/d)                 |   |               | 3,448   |   |                |   | 2,580 |   |   |   | 34 |   |   |   | 3,667 |   |   |   | 2,251 |   |   |   | 63 |   |
| Natural gas (mmcf/d)               |   |               | 432.1   |   |                |   | 359.4 |   |   |   | 20 |   |   |   | 406.1 |   |   |   | 349.4 |   |   |   | 16 |   |
| NGLs (bbl/d)                       |   |               | 5,075   |   |                |   | 2,868 |   |   |   | 77 |   |   |   | 4,518 |   |   |   | 2,811 |   |   |   | 61 |   |
| Total production (boe/d)           |   |               | 117,986 |   |                |   | 100,883 |   |   |   | 17 |   |   |   | 112,387 |   |   |   | 96,087 |   |   |   | 17 |   |
| % Natural gas production           |   |               | 61      |   |                |   | 59 |   |   |   | 3 |   |   |   | 60 |   |   |   | 61 |   |   |   | (2 | ) |
| % Crude oil and liquids production |   |               | 39      |   |                |   | 41 |   |   |   | (5 | ) |   |   | 40 |   |   |   | 39 |   |   |   | 3 |   |

| ARC Resources Ltd. | 10 |
|--------------------|----|

----

|                  |   | Three Months Ended December 31, 2014 |    |
|-----------------------|--------|--------------------------------------|---------|
| Production            |   | Total                                |    |   | Crude Oil |   |   | Condensate |   |   | Natural Gas |   |   | NGLs |   |
| Core Area (1)         |   | (boe/d)                              |    |   | (bbl/d) |   |   | (bbl/d) |   |   | (mmcf/d) |   |   | (bbl/d) |   |
| Northeast BC          |   |                                 | 63,675  |   |   |   | 4,372 |   |   |   | 2,420 |   |   |   | 325.0 |   |   |   | 2,704 |   |
| Northern AB           |   |                                 | 22,583  |   |   |   | 8,496 |   |   |   | 748 |   |   |   | 70.3 |   |   |   | 1,626 |   |
| Pembina               |   |                                 | 12,068  |   |   |   | 9,331 |   |   |   | 167 |   |   |   | 12.8 |   |   |   | 444 |   |
| South Central AB (2)  |   |                                 | 8,645   |   |   |   | 4,542 |   |   |   | 60 |   |   |   | 23.0 |   |   |   | 213 |   |
| Southeast SK & MB |   |                                 | 11,015  |   |   |   | 10,701 |   |   |   | 53 |   |   |   | 1.0 |   |   |   | 88 |   |
| Total                 |   |                                 | 117,986 |   |   |   | 37,442 |   |   |   | 3,448 |   |   |   | 432.1 |   |   |   | 5,075 |   |

|                  |   | Three Months Ended December 31, 2013 |    |
|-----------------------|--------|--------------------------------------|---------|
| Production            |   | Total                                |    |   | Crude Oil |   |   | Condensate |   |   | Natural Gas |   |   | NGLs |   |
| Core Area (1)         |   | (boe/d)                              |    |   | (bbl/d) |   |   | (bbl/d) |   |   | (mmcf/d) |   |   | (bbl/d) |   |
| Northeast BC          |   |                                 | 44,131  |   |   |   | 1,232 |   |   |   | 1,535 |   |   |   | 243.0 |   |   |   | 879 |   |
| Northern AB           |   |                                 | 21,605  |   |   |   | 9,100 |   |   |   | 709 |   |   |   | 63.1 |   |   |   | 1,278 |   |
| Pembina               |   |                                 | 12,427  |   |   |   | 9,698 |   |   |   | 177 |   |   |   | 12.8 |   |   |   | 420 |   |
| South Central AB (2)  |   |                                 | 11,120  |   |   |   | 4,233 |   |   |   | 96 |   |   |   | 39.3 |   |   |   | 235 |   |
| Southeast SK & MB |   |                                 | 11,600  |   |   |   | 11,279 |   |   |   | 63 |   |   |   | 1.2 |   |   |   | 56 |   |
| Total                 |   |                                 | 100,883 |   |   |   | 35,542 |   |   |   | 2,580 |   |   |   | 359.4 |   |   |   | 2,868 |   |

| (1) | Provincial references: "AB" is Alberta, "BC" is British Columbia, "SK" is Saskatchewan, "MB" is Manitoba. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (2)      | During the second quarter of 2014, ARC disposed of certain non-core assets in this district. These assets had been producing approximately 2,400 boe per day prior to disposal. |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | Twelve Months Ended December 31, 2014 |    |
|-----------------------|--------|---------------------------------------|---------|
| Production            |   | Total                                 |    |   | Crude Oil |   |   | Condensate |   |   | Natural Gas |   |   | NGLs |   |
| Core Area (1)         |   | (boe/d)                               |    |   | (bbl/d) |   |   | (bbl/d) |   |   | (mmcf/d) |   |   | (bbl/d) |   |
| Northeast BC          |   |                                  | 57,669  |   |   |   | 3,384 |   |   |   | 2,580 |   |   |   | 296.4 |   |   |   | 2,302 |   |
| Northern AB           |   |                                  | 23,339  |   |   |   | 9,547 |   |   |   | 811 |   |   |   | 68.8 |   |   |   | 1,511 |   |
| Pembina               |   |                                  | 11,391  |   |   |   | 8,779 |   |   |   | 163 |   |   |   | 12.3 |   |   |   | 405 |   |
| South Central AB (2)  |   |                                  | 9,190   |   |   |   | 4,321 |   |   |   | 70 |   |   |   | 27.5 |   |   |   | 220 |   |
| Southeast SK & MB |   |                                  | 10,798  |   |   |   | 10,494 |   |   |   | 43 |   |   |   | 1.1 |   |   |   | 80 |   |
| Total                 |   |                                  | 112,387 |   |   |   | 36,525 |   |   |   | 3,667 |   |   |   | 406.1 |   |   |   | 4,518 |   |

|                  |   | Twelve Months Ended December 31, 2013 |   |
|-----------------------|--------|---------------------------------------|--------|
| Production            |   | Total                                 |   |   | Crude Oil |   |   | Condensate |   |   | Natural Gas |   |   | NGLs |   |
| Core Area (1)         |   | (boe/d)                               |   |   | (bbl/d) |   |   | (bbl/d) |   |   | (mmcf/d) |   |   | (bbl/d) |   |
| Northeast BC          |   |                                  | 42,189 |   |   |   | 934 |   |   |   | 1,224 |   |   |   | 235.6 |   |   |   | 774 |   |
| Northern AB           |   |                                  | 18,274 |   |   |   | 7,005 |   |   |   | 640 |   |   |   | 56.8 |   |   |   | 1,156 |   |
| Pembina               |   |                                  | 12,319 |   |   |   | 8,878 |   |   |   | 263 |   |   |   | 15.8 |   |   |   | 545 |   |
| South Central AB (2)  |   |                                  | 11,698 |   |   |   | 4,648 |   |   |   | 90 |   |   |   | 40.1 |   |   |   | 273 |   |
| Southeast SK & MB |   |                                  | 11,607 |   |   |   | 11,319 |   |   |   | 34 |   |   |   | 1.1 |   |   |   | 63 |   |
| Total                 |   |                                  | 96,087 |   |   |   | 32,784 |   |   |   | 2,251 |   |   |   | 349.4 |   |   |   | 2,811 |   |

| (1) | Provincial references: "AB" is Alberta, "BC" is British Columbia, "SK" is Saskatchewan, "MB" is Manitoba. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (2) | During the second quarter of 2014, ARC disposed of certain non-core assets in this district. These assets had been producing approximately 2,400 boe per day prior to disposal. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 11 |
|--------------------|----|

----

|                                                                 |   | Three Months Ended |   |   | Twelve Months Ended |   |
|----------------------------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                                                                 |   | December 31        |   |   | December 31         |   |
| Sales revenue by product($ millions)                                 |   | 2014               |   |   | 2013                |   |   | % Change |   |   | 2014 |   |   | 2013 |   |   | % Change |   |
| Crude oil                                                            |   |               | 249.7  |   |                |   | 270.9 |   |   |   | (8 | ) |   |   | 1,208.4 |   |   |   | 1,063.8 |   |   |   | 14 |   |
| Condensate                                                           |   |               | 23.5   |   |                |   | 21.0 |   |   |   | 12 |   |   |   | 125.6 |   |   |   | 77.3 |   |   |   | 62 |   |
| Natural gas                                                          |   |               | 165.0  |   |                |   | 119.5 |   |   |   | 38 |   |   |   | 705.6 |   |   |   | 440.2 |   |   |   | 60 |   |
| NGLs                                                                 |   |               | 15.3   |   |                |   | 10.9 |   |   |   | 40 |   |   |   | 65.1 |   |   |   | 37.2 |   |   |   | 75 |   |
| Total sales revenue from crude oil, natural gas, condensate and NGLs |   |               | 453.5  |   |                |   | 422.3 |   |   |   | 7 |   |   |   | 2,104.7 |   |   |   | 1,618.5 |   |   |   | 30 |   |
| Other income                                                         |   |               | 0.6    |   |                |   | 2.7 |   |   |   | (78 | ) |   |   | 3.0 |   |   |   | 5.8 |   |   |   | (48 | ) |
| Total sales revenue                                                  |   |               | 454.1  |   |                |   | 425.0 |   |   |   | 7 |   |   |   | 2,107.7 |   |   |   | 1,624.3 |   |   |   | 30 |   |

|                                                            |   | Three Months Ended |   |   | Twelve Months Ended |   |
|-----------------------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                                                            |   | December 31        |   |   | December 31         |   |
|                                                            |   | 2014               |   |   | 2013                |   |   | % Change |   |   | 2014 |   |   | 2013 |   |   | % Change |   |
| Average Benchmark Prices                                        |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| AECO natural gas (Cdn$/mcf) (1)                                 |   |               | 4.01   |   |                |   | 3.15 |   |   |   | 27 |   |   |   | 4.42 |   |   |   | 3.16 |   |   |   | 40 |   |
| WTI oil (US$/bbl)                                               |   |               | 73.20  |   |                |   | 97.61 |   |   |   | (25 | ) |   |   | 92.91 |   |   |   | 98.05 |   |   |   | (5 | ) |
| Cdn$/US$ exchange rate                                          |   |               | 1.14   |   |                |   | 1.05 |   |   |   | 9 |   |   |   | 1.10 |   |   |   | 1.03 |   |   |   | 7 |   |
| WTI oil (Cdn$/bbl)                                              |   |               | 83.45  |   |                |   | 102.49 |   |   |   | (19 | ) |   |   | 102.20 |   |   |   | 100.99 |   |   |   | 1 |   |
| Edmonton par (Cdn$/bbl)                                         |   |               | 75.65  |   |                |   | 86.64 |   |   |   | (13 | ) |   |   | 94.46 |   |   |   | 93.16 |   |   |   | 1 |   |
| ARC Realized Prices Prior to Hedging                            |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil ($/bbl)                                               |   |               | 72.49  |   |                |   | 82.85 |   |   |   | (13 | ) |   |   | 90.64 |   |   |   | 88.90 |   |   |   | 2 |   |
| Condensate ($/bbl)                                              |   |               | 74.04  |   |                |   | 88.72 |   |   |   | (17 | ) |   |   | 93.81 |   |   |   | 94.13 |   |   |   | — |   |
| Natural gas ($/mcf)                                             |   |               | 4.15   |   |                |   | 3.61 |   |   |   | 15 |   |   |   | 4.76 |   |   |   | 3.45 |   |   |   | 38 |   |
| NGLs ($/bbl)                                                    |   |               | 32.69  |   |                |   | 41.47 |   |   |   | (21 | ) |   |   | 39.45 |   |   |   | 36.25 |   |   |   | 9 |   |
| Total commodity price prior to other income and hedging ($/boe) |   |               | 41.78  |   |                |   | 45.51 |   |   |   | (8 | ) |   |   | 51.31 |   |   |   | 46.15 |   |   |   | 11 |   |
| Other income ($/boe)                                            |   |               | 0.05   |   |                |   | 0.29 |   |   |   | (83 | ) |   |   | 0.07 |   |   |   | 0.16 |   |   |   | (56 | ) |
| Total commodity price prior to hedging ($/boe)                  |   |               | 41.83  |   |                |   | 45.80 |   |   |   | (9 | ) |   |   | 51.38 |   |   |   | 46.31 |   |   |   | 11 |   |

| (1) | Represents the AECO Monthly (7a) index. |
|-----|-----------------------------------------|

| ARC Resources Ltd. | 12 |
|--------------------|----|

----

| Revenue by Product Type                                              |   | Three Months Ended |   | Year Ended  |
|----------------------------------------------------------------------|--------|--------------------|--------|-------------|
|                                                                 |   | December 31        |   | December 31 |
| ($ millions)                                                         |   | 2014               |   | 2013        |   | 2014 |   | 2013 |
|                                                                 |   | Revenue            |   | % of Total  |   | Revenue |   | % of Total |   | Revenue |   | % of Total |   | Revenue |   | % of Total |
| Crude oil and liquids                                                |   |               | 288.5  |        |   |   | 64 |   |   |   | 302.8 |   |   |   | 71 |   |   |   | 1,399.1 |   |   |   | 66 |   |   |   | 1,178.3 |   |   |   | 73 |   |
| Natural gas                                                          |   |               | 165.0  |        |   |   | 36 |   |   |   | 119.5 |   |   |   | 28 |   |   |   | 705.6 |   |   |   | 34 |   |   |   | 440.2 |   |   |   | 27 |   |
| Total sales revenue from crude oil, natural gas, condensate and NGLs |   |               | 453.5  |        |   |   | 100 |   |   |   | 422.3 |   |   |   | 99 |   |   |   | 2,104.7 |   |   |   | 100 |   |   |   | 1,618.5 |   |   |   | 100 |   |
| Other income                                                         |   |               | 0.6    |        |   |   | — |   |   |   | 2.7 |   |   |   | 1 |   |   |   | 3.0 |   |   |   | — |   |   |   | 5.8 |   |   |   | — |   |
| Total sales revenue                                                  |   |               | 454.1  |        |   |   | 100 |   |   |   | 425.0 |   |   |   | 100 |   |   |   | 2,107.7 |   |   |   | 100 |   |   |   | 1,624.3 |   |   |   | 100 |   |

| ARC Resources Ltd. | 13 |
|--------------------|----|

----

| Risk Management Contracts($ millions)                                        |   | Crude Oil & Liquids |    |   | Natural Gas |   |    | Foreign Currency |   |   | Power   |   |   | Q4 2014 Total |    |   | Q4 2013 Total |   |
|------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------|--------|---------|------------------|--------|--------|---------|--------|--------|---------------|---------|--------|---------------|--------|
| Realized gain (loss) on contracts (1)                                        |   |                    | 29.9    |   |             |   | 3.5     |             |   |   | (7.7    | )      |   |          | (0.9    | )      |          |   | 24.8 |   |   |   | 8.9 |   |
| Unrealized gain on contracts recognized in previous quarters (2)             |   |                    | — |   |             |   | — |             |   |   | — |   |   |          | — |   |          |   | — |   |   |   | (5.0 | ) |
| Impact of risk management contracts on funds from operations                 |   |                    | 29.9    |   |             |   | 3.5     |             |   |   | (7.7    | )      |   |          | (0.9    | )      |          |   | 24.8 |   |   |   | 3.9 |   |
| Unrealized gain (loss) on contracts related to future production periods (3) |   |                    | 23.2    |   |             |   | 183.8   |             |   |   | 3.9     |   |   |          | 1.7     |   |          |   | 212.6 |   |   |   | (22.8 | ) |
| Gain (loss) on risk management contracts                                     |   |                    | 53.1    |   |             |   | 187.3   |             |   |   | (3.8    | )      |   |          | 0.8     |   |          |   | 237.4 |   |   |   | (18.9 | ) |

| (1) | Represents actual cash settlements or receipts under the respective contracts. |
|-----|--------------------------------------------------------------------------------|

| (2) | ARC enters into certain commodity price risk management contracts that pertain to production periods spanning the entire calendar year but that are settled at the end of the year on an annual average benchmark commodity price. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents the change in fair value of the contracts during the period. |
|-----|-------------------------------------------------------------------------|

| Risk Management Contracts($ millions)                                        |   | Crude Oil & Liquids |   |   | Natural Gas |   |   | Foreign Currency |   |   | Power |   |   | 2014 YTD Total |   |   | 2013 YTD Total |   |
|------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------|--------|--------|------------------|--------|--------|-------|--------|--------|----------------|--------|--------|----------------|--------|
| Realized gain (loss) on contracts (1)                                        |   |                    | 12.0   |   |             |   | (23.5  | )                |   |   | (15.9 | )      |   |           | (1.7   | )      |           |   | (29.1 | ) |   |   | 15.7 |   |
| Unrealized gain (loss) on contracts related to future production periods (2) |   |                    | 40.9   |   |             |   | 165.7  |             |   |   | (0.9  | )      |   |           | (0.4   | )      |           |   | 205.3 |   |   |   | 30.6 |   |
| Gain (loss) on risk management contracts                                     |   |                    | 52.9   |   |             |   | 142.2  |             |   |   | (16.8 | )      |   |           | (2.1   | )      |           |   | 176.2 |   |   |   | 46.3 |   |

| (1) | Represents actual cash settlements or receipts under the respective contracts. |
|-----|--------------------------------------------------------------------------------|

| (2) | Represents the change in fair value of the contracts during the period. |
|-----|-------------------------------------------------------------------------|

| ARC Resources Ltd. | 14 |
|--------------------|----|

----

| Hedge Positions Summary (1) |   |
|-----------------------------|--------|
| As at February 11, 2015     |   | 2015 |   |   | 2016 |   |   | 2017 |   |   | 2018 |   |   | 2019 |   |
| Crude Oil (2)               |   | US$/bbl |   |   | bbl/day |   |   | US$/bbl |   |   | bbl/day |   |   | US$/bbl |   |   | bbl/day |   |   | US$/bbl |   |   | bbl/day |   |   | US$/bbl |   |   | bbl/day |   |
| Ceiling                     |   |   | 100.83 |   |   |   | 2,975 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Floor                       |   |   | 90.00 |   |   |   | 2,975 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Sold Floor                  |   |   | 65.00 |   |   |   | 2,975 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Crude Oil (2)               |   | Cdn$/bbl |   |   | bbl/day |   |   | Cdn$/bbl |   |   | bbl/day |   |   | Cdn$/bbl |   |   | bbl/day |   |   | Cdn$/bbl |   |   | bbl/day |   |   | Cdn$/bbl |   |   | bbl/day |   |
| Ceiling                     |   |   | 80.00 |   |   |   | 2,507 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Floor                       |   |   | 60.00 |   |   |   | 2,507 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Natural Gas (3)             |   | US$/mmbtu |   |   | mmbtu/day |   |   | US$/mmbtu |   |   | mmbtu/day |   |   | US$/mmbtu |   |   | mmbtu/day |   |   | US$/mmbtu |   |   | mmbtu/day |   |   | US$/mmbtu |   |   | mmbtu/day |   |
| Ceiling                     |   |   | 4.56 |   |   |   | 219,932 |   |   |   | 4.81 |   |   |   | 145,000 |   |   |   | 4.81 |   |   |   | 145,000 |   |   |   | 4.92 |   |   |   | 90,000 |   |   |   | 5.00 |   |   |   | 40,000 |   |
| Floor                       |   |   | 3.94 |   |   |   | 219,932 |   |   |   | 4.00 |   |   |   | 145,000 |   |   |   | 4.00 |   |   |   | 145,000 |   |   |   | 4.00 |   |   |   | 90,000 |   |   |   | 4.00 |   |   |   | 40,000 |   |
| Natural Gas - AECO Basis(4) |   | AECO/NYMEX |   |   | mmbtu/day |   |   | AECO/NYMEX |   |   | mmbtu/day |   |   | AECO/NYMEX |   |   | mmbtu/day |   |   | AECO/NYMEX |   |   | mmbtu/day |   |   | AECO/NYMEX |   |   | mmbtu/day |   |
| Swap (percentage of NYMEX)  |   |   | 89.9 |   |   |   | 145,123 |   |   |   | 90.3 |   |   |   | 140,000 |   |   |   | 90.2 |   |   |   | 140,000 |   |   |   | 88.2 |   |   |   | 55,000 |   |   |   | 90.8 |   |   |   | 9,918 |   |
| Foreign Exchange            |   | Cdn$/US$ |   |   | US$ Total |   |   | Cdn$/US$ |   |   | US$ Total |   |   | Cdn$/US$ |   |   | US$ Total |   |   | Cdn$/US$ |   |   | US$ Total |   |   | Cdn$/US$ |   |   | US$ Total |   |
| Ceiling                     |   |   | 1.0725 |   |   |   | 48,000 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Floor                       |   |   | 1.0463 |   |   |   | 48,000 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |

| (1) | The prices and volumes in this table represent averages for several contracts representing different periods. The average price for the portfolio of options listed above does not have the same payoff profile as the individual option contracts. Viewing the average price of a group of options is purely for indicative purposes. All positions are financially settled against the benchmark prices disclosed in Note 15 “Financial Instruments and Market Risk Management” in the financial statements for the year ended December 31, 2014. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The crude oil prices in this table are referenced to WTI. |
|-----|-----------------------------------------------------------|

| (3) | The natural gas prices in this table are referenced to NYMEX at Henry Hub. |
|-----|----------------------------------------------------------------------------|

| (4) | ARC sells the majority of its natural gas production based on AECO pricing. To reduce the risk of weak basis pricing (AECO relative to NYMEX) ARC has hedged a portion of production by tying ARC's price to a percentage of the NYMEX natural gas price. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 15 |
|--------------------|----|

----

|   | — | If the market price is above $100.83 per barrel, ARC will receive $100.83 per barrel on 2,975 barrels per day. |
|--------|---------|----------------------------------------------------------------------------------------------------------------|

|   | — | If the market price is between $90.00 and $100.83 per barrel, ARC will receive the market price on 2,975 barrels per day. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

|   | — | If the market price is between $65.00 and $90.00 per barrel, ARC will receive $90.00 per barrel on 2,975 barrels per day. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

|   | — | If the market price is below $65.00 per barrel, ARC will receive $90.00 per barrel less the difference between $65.00 per barrel and the market price on 2,975 barrels per day. For example, if the market price is at $55.00 per barrel, ARC will receive $80.00 per barrel on 2,975 barrels per day. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Netbacks(1)              |   | Crude Oil |    |   | Heavy Oil |   |    | Condensate |   |   | Natural Gas |   |   | NGLs    |    |   | Q4 2014 Total |   |    | Q4 2013 Total |   |
|--------------------------|--------|-----------|---------|--------|-----------|--------|---------|------------|--------|--------|-------------|--------|--------|---------|---------|--------|---------------|--------|---------|---------------|--------|
|                     |   | ($/bbl)   |    |   | ($/bbl)   |   |    | ($/bbl)    |   |   | ($/mcf)     |   |   | ($/bbl) |    |   | ($/boe)       |   |    | ($/boe)       |   |
| Average sales price      |   |      | 72.90   |   |      |   | 59.71   |       |   |   | 74.04       |   |   |    | 4.15    |   |          |   | 32.69   |          |   |   | 41.78 |   |   |   | 45.51 |   |
| Other income             |   |      | — |   |      |   | — |       |   |   | —     |   |   |    | — |   |          |   | — |          |   |   | 0.05 |   |   |   | 0.29 |   |
| Total sales              |   |      | 72.90   |   |      |   | 59.71   |       |   |   | 74.04       |   |   |    | 4.15    |   |          |   | 32.69   |          |   |   | 41.83 |   |   |   | 45.80 |   |
| Royalties                |   |      | (11.97  | )      |      |   | (4.32   | )          |   |   | (13.72      | )      |   |    | (0.39   | )      |          |   | (4.85   | )             |   |   | (5.77 | ) |   |   | (6.42 | ) |
| Transportation           |   |      | (3.39   | )      |      |   | (0.62   | )          |   |   | (4.59       | )      |   |    | (0.27   | )      |          |   | (8.17   | )             |   |   | (2.51 | ) |   |   | (1.83 | ) |
| Operating expenses (2)   |   |      | (14.46  | )      |      |   | (13.27  | )          |   |   | (6.18       | )      |   |    | (0.96   | )      |          |   | (6.05   | )             |   |   | (8.55 | ) |   |   | (9.21 | ) |
| Netback prior to hedging |   |      | 43.08   |   |      |   | 41.50   |       |   |   | 49.55       |   |   |    | 2.53    |   |          |   | 13.62   |          |   |   | 25.00 |   |   |   | 28.34 |   |
| Hedging gain (3)         |   |      | 7.24    |   |      |   | — |       |   |   | —     |   |   |    | 0.02    |   |          |   | — |          |   |   | 2.29 |   |   |   | 0.41 |   |
| Netback after hedging    |   |      | 50.32   |   |      |   | 41.50   |       |   |   | 49.55       |   |   |    | 2.55    |   |          |   | 13.62   |          |   |   | 27.29 |   |   |   | 28.75 |   |
| % of total netback       |   |      | 57      |   |      |   | 2       |       |   |   | 5           |   |   |    | 34      |   |          |   | 2       |          |   |   | 100 |   |   |   | 100 |   |

| (1) | Non-GAAP measure which may not be comparable to similar non-GAAP measures used by other entities. Refer to the section entitled "Non-GAAP Measures" contained within this MD&A. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Composed of direct costs incurred to operate crude oil and natural gas wells. A number of assumptions have been made in allocating these costs between crude oil, heavy oil, condensate, natural gas and NGLs production. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes realized cash gains and losses on commodity risk management contracts, plus a reversal for unrealized gains and losses on risk management contracts that relate to current year production that have been recognized in netback calculations in prior quarters. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 16 |
|--------------------|----|

----

| Netbacks(1)              |   | Crude Oil |    |   | Heavy Oil |   |    | Condensate |   |   | Natural Gas |   |   | NGLs    |    |   | 2014 YTD Total |   |    | 2013 YTD Total |   |
|--------------------------|--------|-----------|---------|--------|-----------|--------|---------|------------|--------|--------|-------------|--------|--------|---------|---------|--------|----------------|--------|---------|----------------|--------|
|                     |   | ($/bbl)   |    |   | ($/bbl)   |   |    | ($/bbl)    |   |   | ($/mcf)     |   |   | ($/bbl) |    |   | ($/boe)        |   |    | ($/boe)        |   |
| Average sales price      |   |      | 91.17   |   |      |   | 72.95   |       |   |   | 93.81       |   |   |    | 4.76    |   |           |   | 39.45   |           |   |   | 51.31 |   |   |   | 46.15 |   |
| Other income             |   |      | — |   |      |   | — |       |   |   | —     |   |   |    | — |   |           |   | — |           |   |   | 0.07 |   |   |   | 0.16 |   |
| Total sales              |   |      | 91.17   |   |      |   | 72.95   |       |   |   | 93.81       |   |   |    | 4.76    |   |           |   | 39.45   |           |   |   | 51.38 |   |   |   | 46.31 |   |
| Royalties                |   |      | (14.65  | )      |      |   | (4.99   | )          |   |   | (14.20      | )      |   |    | (0.52   | )      |           |   | (6.08   | )              |   |   | (7.26 | ) |   |   | (6.36 | ) |
| Transportation           |   |      | (2.97   | )      |      |   | (0.71   | )          |   |   | (3.36       | )      |   |    | (0.25   | )      |           |   | (6.82   | )              |   |   | (2.23 | ) |   |   | (1.72 | ) |
| Operating expenses (2)   |   |      | (14.94  | )      |      |   | (15.54  | )          |   |   | (6.58       | )      |   |    | (0.97   | )      |           |   | (6.98   | )              |   |   | (8.88 | ) |   |   | (9.66 | ) |
| Netback prior to hedging |   |      | 58.61   |   |      |   | 51.71   |       |   |   | 69.67       |   |   |    | 3.02    |   |           |   | 19.57   |           |   |   | 33.01 |   |   |   | 28.57 |   |
| Hedging gain (loss) (3)  |   |      | 0.12    |   |      |   | — |       |   |   | —     |   |   |    | (0.19   | )      |           |   | — |           |   |   | (0.65 | ) |   |   | 0.45 |   |
| Netback after hedging    |   |      | 58.73   |   |      |   | 51.71   |       |   |   | 69.67       |   |   |    | 2.83    |   |           |   | 19.57   |           |   |   | 32.36 |   |   |   | 29.02 |   |
| % of total netback       |   |      | 57      |   |      |   | 2       |       |   |   | 7           |   |   |    | 32      |   |           |   | 2       |           |   |   | 100 |   |   |   | 100 |   |

| (1) | Non-GAAP measure which may not be comparable to similar non-GAAP measures used by other entities. Refer to the section entitled "Non-GAAP Measures" contained within this MD&A. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Composed of direct costs incurred to operate crude oil and natural gas wells. A number of assumptions have been made in allocating these costs between crude oil, heavy oil, condensate, natural gas and NGLs production. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes realized cash gains and losses on commodity risk management contracts. |
|-----|---------------------------------------------------------------------------------|

| ARC Resources Ltd. | 17 |
|--------------------|----|

----

| ARC Resources Ltd. | 18 |
|--------------------|----|

----

|                                                                |   | Three Months Ended |   |   | Twelve Months Ended |   |
|---------------------------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                                                                |   | December 31        |   |   | December 31         |   |
| G&A and Long-term Incentive Compensation                        |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ($ millions, except per boe)                                        |   | 2014               |   |   | 2013                |   |   | % Change |   |   | 2014 |   |   | 2013 |   |   | % Change |   |
| G&A expenses (1)                                                |   |               | 27.1   |   |                |   | 27.1 |   |   |   | — |   |   |   | 107.1 |   |   |   | 104.8 |   |   |   | 2 |   |
| Capitalized G&A and overhead recoveries                         |   |               | (12.3  | )      |                |   | (12.7 | ) |   |   | (3 | ) |   |   | (48.1 | ) |   |   | (46.3 | ) |   |   | 4 |   |
| G&A expenses before long-term incentive plans                   |   |               | 14.8   |   |                |   | 14.4 |   |   |   | 3 |   |   |   | 59.0 |   |   |   | 58.5 |   |   |   | 1 |   |
| G&A – long-term incentive plans (2)                       |   |               | 11.2   |   |                |   | 9.9 |   |   |   | 13 |   |   |   | 25.3 |   |   |   | 38.6 |   |   |   | (34 | ) |
| Total G&A and long-term incentive compensation expenses         |   |               | 26.0   |   |                |   | 24.3 |   |   |   | 7 |   |   |   | 84.3 |   |   |   | 97.1 |   |   |   | (13 | ) |
| Total G&A and long-term incentive compensation expenses per boe |   |               | 2.40   |   |                |   | 2.62 |   |   |   | (8 | ) |   |   | 2.06 |   |   |   | 2.77 |   |   |   | (26 | ) |

| (1) | Includes expenses recognized under the DSU Plan. |
|-----|--------------------------------------------------|

| (2) | Comprised of expenses recognized under the RSU, PSU and Stock Option Plans. |
|-----|-----------------------------------------------------------------------------|

| ARC Resources Ltd. | 19 |
|--------------------|----|

----

| RSU and PSU Plan(number of units, thousands) |   | RSUs   |   |   | PSUs(1) |   |   | TotalRSUs and PSUs |   |
|----------------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------------------|--------|
| Balance, December 31, 2013                   |   |   | 638    |   |    |   | 1,492  |               |   |   | 2,130 |   |
| Granted                                      |   |   | 327    |   |    |   | 494    |               |   |   | 821 |   |
| Distributed                                  |   |   | (299   | )      |    |   | (435   | )                  |   |   | (734 | ) |
| Forfeited                                    |   |   | (41    | )      |    |   | (38    | )                  |   |   | (79 | ) |
| Balance, December 31, 2014                   |   |   | 625    |   |    |   | 1,513  |               |   |   | 2,138 |   |

| (1) | Based on underlying units before performance multiplier. |
|-----|----------------------------------------------------------|

| Value of RSU and PSU Plan as at                    |   |                   |    |   |   |   |   |   |   |
|----------------------------------------------------|--------|------------------------|---------|--------|--------|--------|--------|--------|--------|
| December 31, 2014                                  |   | Performance multiplier |    |
| (units thousands and $ millions, except per share) |   |                   | — |   |   |   | 1.0    |   |   |   | 2.0 |   |
| Estimated units to vest                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| RSUs                                               |   |                   | 648     |   |   |   | 648    |   |   |   | 648 |   |
| PSUs                                               |   |                   | — |   |   |   | 1,590  |   |   |   | 3,180 |   |
| Total units (1)                                    |   |                   | 648     |   |   |   | 2,238  |   |   |   | 3,828 |   |
| Share price (2)                                    |   |                   | 25.16   |   |   |   | 25.16  |   |   |   | 25.16 |   |
| Value of RSU and PSU Plan upon vesting (3)         |   |                   | 16.3    |   |   |   | 56.3   |   |   |   | 96.3 |   |
| 2015                                               |   |                   | 8.2     |   |   |   | 22.1   |   |   |   | 36.1 |   |
| 2016                                               |   |                   | 5.4     |   |   |   | 19.2   |   |   |   | 33.0 |   |
| 2017                                               |   |                   | 2.7     |   |   |   | 15.0   |   |   |   | 27.2 |   |

| (1) | Includes additional estimated units to be issued under the RSU and PSU Plan for dividends accrued to date. |
|-----|------------------------------------------------------------------------------------------------------------|

| (2) | Values will fluctuate over the vesting period based on the volatility of the underlying share price. Assumes a future share price of $25.16, which is based on the closing share price at December 31, 2014. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Upon vesting, a cash payment is made for the value of the share units, equivalent to the current market price of the underlying common shares plus accrued dividends. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 20 |
|--------------------|----|

----

|                                                |   | Three Months Ended |   |   | Twelve Months Ended |   |
|-----------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                                                |   | December 31        |   |   | December 31         |   |
| Foreign Exchange Gains and Losses($ millions)       |   | 2014               |   |   | 2013                |   |   | % Change |   |   | 2014 |   |   | 2013 |   |   | % Change |   |
| Unrealized loss on US denominated debt              |   |               | (32.7  | )      |                |   | (24.8 | ) |   |   | 32 |   |   |   | (73.8 | ) |   |   | (48.9 | ) |   |   | 51 |   |
| Realized gain (loss) on US denominated transactions |   |               | 0.4    |   |                |   | — |   |   |   | — |   |   |   | 0.1 |   |   |   | (0.3 | ) |   |   | (133 | ) |
| Total foreign exchange loss                         |   |               | (32.3  | )      |                |   | (24.8 | ) |   |   | 30 |   |   |   | (73.7 | ) |   |   | (49.2 | ) |   |   | 50 |   |

| ARC Resources Ltd. | 21 |
|--------------------|----|

----

| Income Tax Pool Type($ millions)      |   | December 31, 2014 |    |   | Annual Deductibility |
|---------------------------------------|--------|-------------------|---------|--------|----------------------|
| Canadian oil and gas property expense |   |              | 710.9   |   |                 | 10% declining balance |
| Canadian development expense          |   |              | 974.6   |   |                 | 30% declining balance |
| Canadian exploration expense          |   |              | — |   |                 |   | 100 | % |
| Undepreciated capital cost            |   |              | 834.5   |   |                 | Primarily 25% declining balance |
| Other                                 |   |              | 10.8    |   |                 | Various rates, 7% declining balance to 20% |
| Total federal tax pools               |   |              | 2,530.8 |   |                 |   |   |   |
| Additional Alberta tax pools          |   |              | 19.9    |   |                 | Various rates, 25% declining balance to 100% |

| ARC Resources Ltd. | 22 |
|--------------------|----|

----

|                                                 |   | Three Months Ended |   |   | Twelve Months Ended |   |
|------------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                                                 |   | December 31        |   |   | December 31         |   |
| DD&A Expense($ millions, except per boe amounts) |   | 2014               |   |   | 2013                |   |   | % Change |   |   | 2014 |   |   | 2013 |   |   | % Change |   |
| Depletion of oil and gas assets                      |   |               | 174.7  |   |                |   | 155.5 |   |   |   | 12 |   |   |   | 649.2 |   |   |   | 545.4 |   |   |   | 19 |   |
| Depreciation of administrative assets                |   |               | 1.7    |   |                |   | 1.5 |   |   |   | 13 |   |   |   | 6.3 |   |   |   | 6.5 |   |   |   | (3 | ) |
| Impairment charges                                   |   |               | 103.0  |   |                |   | — |   |   |   | 100 |   |   |   | 103.0 |   |   |   | — |   |   |   | 100 |   |
| Total DD&A expense and impairment charges        |   |               | 279.4  |   |                |   | 157.0 |   |   |   | 78 |   |   |   | 758.5 |   |   |   | 551.9 |   |   |   | 37 |   |
| DD&A rate before impairment per boe              |   |               | 16.25  |   |                |   | 16.92 |   |   |   | (4 | ) |   |   | 15.98 |   |   |   | 15.74 |   |   |   | 17 |   |
| DD&A and impairment rate per boe                 |   |               | 25.74  |   |                |   | 16.92 |   |   |   | 52 |   |   |   | 18.49 |   |   |   | 15.74 |   |   |   | 17 |   |

|                                                                            |   | Three Months Ended December 31 |    |
|---------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                            |   | 2014                           |    |   | 2013 |   |   |   |   |
| Capital Expenditures($ millions)                                                |   | E&E                        |    |   | PP&E |   |   | Total |   |   | E&E |   |   | PP&E |   |   | Total |   |   | % Change |   |
| Geological and geophysical                                                      |   |                           | — |   |   |   | 4.7 |   |   |   | 4.7 |   |   |   | 0.2 |   |   |   | 6.4 |   |   |   | 6.6 |   |   |   | (29 | ) |
| Drilling and completions                                                        |   |                           | 2.5     |   |   |   | 161.9 |   |   |   | 164.4 |   |   |   | 9.1 |   |   |   | 131.8 |   |   |   | 140.9 |   |   |   | 17 |   |
| Plant and facilities                                                            |   |                           | 1.2     |   |   |   | 77.0 |   |   |   | 78.2 |   |   |   | 1.3 |   |   |   | 57.5 |   |   |   | 58.8 |   |   |   | 33 |   |
| Administrative assets                                                           |   |                           | — |   |   |   | 2.0 |   |   |   | 2.0 |   |   |   | — |   |   |   | 1.4 |   |   |   | 1.4 |   |   |   | 43 |   |
| Total capital expenditures                                                      |   |                           | 3.7     |   |   |   | 245.6 |   |   |   | 249.3 |   |   |   | 10.6 |   |   |   | 197.1 |   |   |   | 207.7 |   |   |   | 20 |   |
| Undeveloped land purchased at Crown    land sales                     |   |                           | 0.6     |   |   |   | 17.4 |   |   |   | 18.0 |   |   |   | — |   |   |   | 3.5 |   |   |   | 3.5 |   |   |   | 414 |   |
| Total capital expenditures including undeveloped land purchases                 |   |                           | 4.3     |   |   |   | 263.0 |   |   |   | 267.3 |   |   |   | 10.6 |   |   |   | 200.6 |   |   |   | 211.2 |   |   |   | 27 |   |
| Acquisitions (1)                                                                |   |                           | — |   |   |   | — |   |   |   | — |   |   |   | 8.6 |   |   |   | 3.8 |   |   |   | 12.4 |   |   |   | (100 | ) |
| Dispositions (2)                                                                |   |                           | — |   |   |   | (2.4 | ) |   |   | (2.4 | ) |   |   | — |   |   |   | 0.5 |   |   |   | 0.5 |   |   |   | (580 | ) |
| Total capital expenditures, land purchasesand net acquisitions and dispositions |   |                           | 4.3     |   |   |   | 260.6 |   |   |   | 264.9 |   |   |   | 19.2 |   |   |   | 204.9 |   |   |   | 224.1 |   |   |   | 18 |   |

| (1) | Value is net of post-closing adjustments. |
|-----|-------------------------------------------|

| (2) | Represents proceeds and adjustments to proceeds from divestitures. |
|-----|--------------------------------------------------------------------|

| ARC Resources Ltd. | 23 |
|--------------------|----|

----

|                                                                             |   | Twelve Months Ended December 31 |    |
|----------------------------------------------------------------------------------|--------|---------------------------------|---------|
|                                                                             |   | 2014                            |    |   | 2013 |   |   |   |   |
| Capital Expenditures($ millions)                                                 |   | E&E                         |    |   | PP&E |   |   | Total |   |   | E&E |   |   | PP&E |   |   | Total |   |   | % Change |   |
| Geological and geophysical                                                       |   |                            | 1.4     |   |   |   | 16.2 |   |   |   | 17.6 |   |   |   | 0.3 |   |   |   | 18.9 |   |   |   | 19.2 |   |   |   | (8 | ) |
| Drilling and completions                                                         |   |                            | 30.8    |   |   |   | 629.2 |   |   |   | 660.0 |   |   |   | 12.9 |   |   |   | 555.5 |   |   |   | 568.4 |   |   |   | 16 |   |
| Plant and facilities                                                             |   |                            | 15.8    |   |   |   | 245.6 |   |   |   | 261.4 |   |   |   | 1.6 |   |   |   | 266.1 |   |   |   | 267.7 |   |   |   | (2 | ) |
| Administrative assets                                                            |   |                            | — |   |   |   | 6.5 |   |   |   | 6.5 |   |   |   | — |   |   |   | 4.6 |   |   |   | 4.6 |   |   |   | 41 |   |
| Total capital expenditures                                                       |   |                            | 48.0    |   |   |   | 897.5 |   |   |   | 945.5 |   |   |   | 14.8 |   |   |   | 845.1 |   |   |   | 859.9 |   |   |   | 10 |   |
| Undeveloped land purchased at Crown land sales                                   |   |                            | 1.4     |   |   |   | 60.9 |   |   |   | 62.3 |   |   |   | 0.2 |   |   |   | 14.1 |   |   |   | 14.3 |   |   |   | 336 |   |
| Total capital expenditures including undeveloped land purchases                  |   |                            | 49.4    |   |   |   | 958.4 |   |   |   | 1,007.8 |   |   |   | 15.0 |   |   |   | 859.2 |   |   |   | 874.2 |   |   |   | 15 |   |
| Acquisitions (1)                                                                 |   |                            | 1.8     |   |   |   | 71.7 |   |   |   | 73.5 |   |   |   | 13.6 |   |   |   | 22.8 |   |   |   | 36.4 |   |   |   | 102 |   |
| Dispositions (2)                                                                 |   |                            | (1.8    | ) |   |   | (37.5 | ) |   |   | (39.3 | ) |   |   | — |   |   |   | (89.8 | ) |   |   | (89.8 | ) |   |   | (56 | ) |
| Total capital expenditures, land purchases and net acquisitions and dispositions |   |                            | 49.4    |   |   |   | 992.6 |   |   |   | 1,042.0 |   |   |   | 28.6 |   |   |   | 792.2 |   |   |   | 820.8 |   |   |   | 27 |   |

| (1) | Value is net of post-closing adjustments. |
|-----|-------------------------------------------|

| (2) | Represents proceeds and adjustments to proceeds from divestitures. |
|-----|--------------------------------------------------------------------|

|                                                                                        |   | Three Months Ended December 31                |   |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                                        |   | 2014                                          |   |   | 2013 |   |
| Source of Funding of Capital Expenditures and Net Acquisitions and Dispositions($ millions) |   | Capital Expenditures including Land Purchases |   |   | Net Acquisitions |   |   | Total Expenditures |   |   | Capital Expenditures including Land Purchases |   |   | Net Dispositions |   |   | Total Expenditures |   |
| Expenditures (1)                                                                            |   |                                          | 267.3  |   |   |   | (2.4 | ) |   |   | 264.9 |   |   |   | 211.2 |   |   |   | 12.9 |   |   |   | 224.1 |   |
| Funds from operations,net (%) (2)                                                           |   |                                          | 55     |   |   |   | — |   |   |   | 55 |   |   |   | 64 |   |   |   | — |   |   |   | 60 |   |
| Contributions from DRIP and    SDP (%)                                            |   |                                          | 15     |   |   |   | — |   |   |   | 15 |   |   |   | 16 |   |   |   | — |   |   |   | 15 |   |
| Debt (%)                                                                                    |   |                                          | 30     |   |   |   | 100 |   |   |   | 30 |   |   |   | 20 |   |   |   | 100 |   |   |   | 25 |   |
| Total (%)                                                                                   |   |                                          | 100    |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |

| (1) | Excludes capital expenditures attributable to non-cash stock options. |
|-----|-----------------------------------------------------------------------|

| (2) | Refer to the sections entitled "Funds from Operations" and “Additional GAAP Measures” contained within this MD&A. The percentage of capital expenditures that have been funded by funds from operations is determined as funds from operations that are available after deducting current period expenditures on site restoration and reclamation, net reclamation fund contributions, and dividends declared in the current period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 24 |
|--------------------|----|

----

|                                                                                        |   | Twelve Months Ended December 31               |    |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                                        |   | 2014                                          |    |   | 2013 |   |
| Source of Funding of Capital Expenditures and Net Acquisitions and Dispositions($ millions) |   | Capital Expenditures including Land Purchases |    |   | Net Acquisitions |   |   | Total Expenditures |   |   | Capital Expenditures including Land Purchases |   |   | Net Dispositions |   |   | Total Expenditures |   |
| Expenditures (1)                                                                            |   |                                          | 1,007.6 |   |   |   | 34.2 |   |   |   | 1,041.8 |   |   |   | 874.2 |   |   |   | (53.4 | ) |   |   | 820.8 |   |
| Funds from operations,net (%) (2)                                                           |   |                                          | 71      |   |   |   | — |   |   |   | 69 |   |   |   | 53 |   |   |   | — |   |   |   | 57 |   |
| Contributions from DRIP and    SDP (%)                                            |   |                                          | 15      |   |   |   | — |   |   |   | 14 |   |   |   | 15 |   |   |   | — |   |   |   | 16 |   |
| Debt (%)                                                                                    |   |                                          | 14      |   |   |   | 100 |   |   |   | 17 |   |   |   | 32 |   |   |   | 100 |   |   |   | 27 |   |
| Total (%)                                                                                   |   |                                          | 100     |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |

| (1) | Excludes capital expenditures attributable to non-cash stock options. |
|-----|-----------------------------------------------------------------------|

| (2) | Refer to the sections entitled "Funds from Operations" and “Additional GAAP Measures” contained within this MD&A. The percentage of capital expenditures that have been funded by funds from operations is determined as funds from operations that are available after deducting current period expenditures on site restoration and reclamation, net reclamation fund contributions, and dividends declared in the current period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 25 |
|--------------------|----|

----

| Capital Structure and Liquidity($ millions, except per cent and ratio amounts) |   | December 31, 2014 |    |   | December 31, 2013 |   |
|--------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| Long-term debt (1)                                                             |   |              | 1,074.8 |   |              |   | 901.3 |   |
| Working capital deficit (2)                                                    |   |              | 181.1   |   |              |   | 110.2 |   |
| Net debt obligations (3)                                                       |   |              | 1,255.9 |   |              |   | 1,011.5 |   |
| Market value of common shares (4)                                              |   |              | 8,036.1 |   |              |   | 9,287.9 |   |
| Total capitalization (3)                                                       |   |              | 9,292.0 |   |              |   | 10,299.4 |   |
| Net debt as a percentage of total capitalization                               |   |              | 13.5    |   |              |   | 9.8 |   |
| Net debt to annual funds from operations (3)                                   |   |              | 1.1     |   |              |   | 1.2 |   |

| (1) | Includes a current portion of long-term debt of $49.5 million at December 31, 2014 and $42.1 million at December 31, 2013. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (2) | Working capital deficit is calculated as current liabilities less current assets as they appear on the consolidated balance sheets (the "balance sheets"), and excludes current unrealized amounts pertaining to risk management contracts, assets held for sale and ARO contained within liabilities associated with assets held for sale, as well as the current portion of long-term debt and current portion of ARO. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Refer to the section entitled "Additional GAAP Measures” contained within this MD&A. |
|-----|------------------------------------------------------------------------------------------------|

| (4) | Calculated using the total common shares outstanding at December 31, 2014 multiplied by the closing share price of $25.16 at December 31, 2014 (closing share price of $29.57 at December 31, 2013). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Covenant description                                                                                                                                                                    |   | Estimated Position atDecember 31, 2014 (1) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
| Long-term debt and letters of credit not to exceed three and a quarter times annualized net income    before non-cash items, income taxes and interest expense           |   |                                       | 0.9    |   |
| Long-term debt, letters of credit, and subordinated debt not to exceed four times annualized net    income before non-cash items, income taxes and interest expense           |   |                                       | 0.9    |   |
| Long-term debt and letters of credit not to exceed 50 per cent of the book value of shareholders’    equity and long-term debt, letters of credit and subordinated debt |   |                                       | 0.2    |   |

| (1) | Estimated position, subject to final approval. |
|-----|------------------------------------------------|

| ARC Resources Ltd. | 26 |
|--------------------|----|

----

|   | — | To maintain a dividend policy that, in normal times, in the opinion of Management and the Board, is sustainable after factoring in the impact of current commodity prices on funds from operations. ARC’s objective is to normalize the effect of volatility of commodity prices rather than to pass that volatility onto shareholders in the form of fluctuating monthly dividends. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | To maintain ARC’s financial flexibility, by reviewing ARC’s level of debt to equity and debt to funds from operations. The use of funds from operations and proceeds from equity offerings to fund capital development activities reduces the need to use debt to finance these expenditures. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC's Board of Directors approved a modification to the DRIP and SDP wherein the discount applicable to common shares acquired or issued under both plans was reduced to three per cent from five per cent. The change took effect for the September 15, 2014 dividend payment for shareholders on record as of August 29, 2014. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 27 |
|--------------------|----|

----

|                                                |   | Payments Due by Period |   |
|-----------------------------------------------------|--------|------------------------|--------|
| Contractual Obligations and Commitments($ millions) |   | 1 Year                 |   |   | 2-3 Years |   |   | 4-5 Years |   |   | Beyond 5 Years |   |   | Total |   |
| Debt repayments (1)                                 |   |                   | 49.5   |   |   |   | 94.0 |   |   |   | 220.7 |   |   |   | 710.6 |   |   |   | 1,074.8 |   |
| Interest payments (2)                               |   |                   | 43.5   |   |   |   | 78.8 |   |   |   | 66.4 |   |   |   | 88.7 |   |   |   | 277.4 |   |
| Reclamation fund contributions (3)                  |   |                   | 3.4    |   |   |   | 6.4 |   |   |   | 6.0 |   |   |   | 48.4 |   |   |   | 64.2 |   |
| Purchase commitments                                |   |                   | 27.0   |   |   |   | 19.4 |   |   |   | 13.6 |   |   |   | 8.2 |   |   |   | 68.2 |   |
| Transportation commitments                          |   |                   | 67.2   |   |   |   | 137.7 |   |   |   | 113.6 |   |   |   | 260.7 |   |   |   | 579.2 |   |
| Operating leases                                    |   |                   | 15.8   |   |   |   | 29.4 |   |   |   | 27.1 |   |   |   | 58.6 |   |   |   | 130.9 |   |
| Risk management contract premiums (4)               |   |                   | 0.8    |   |   |   | 9.6 |   |   |   | 0.5 |   |   |   | — |   |   |   | 10.9 |   |
| Total contractual obligations and commitments       |   |                   | 207.2  |   |   |   | 375.3 |   |   |   | 447.9 |   |   |   | 1,175.2 |   |   |   | 2,205.6 |   |

| (1) | Long-term and current portion of long-term debt. |
|-----|--------------------------------------------------|

| (2) | Fixed interest payments on senior notes. |
|-----|------------------------------------------|

| (3) | Contribution commitments to a restricted reclamation fund associated with the Redwater property. |
|-----|--------------------------------------------------------------------------------------------------|

| (4) | Fixed premiums to be paid in future periods on certain commodity price risk management contracts. |
|-----|---------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 28 |
|--------------------|----|

----

|   | — | estimated revenues, royalties and operating expenses on production as at a specific reporting date but for which actual revenues and costs have not yet been received; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | estimated capital expenditures on projects that are in progress; |
|--------|---------|------------------------------------------------------------------|

|   | — | estimated DD&A charges that are based on estimates of oil and gas reserves that ARC expects to recover in the future; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

|   | — | estimated fair values of financial instruments that are subject to fluctuation depending upon the underlying commodity prices, foreign exchange rates and interest rates, volatility curves and the risk of non-performance; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | estimated value of asset retirement obligations that are dependent upon estimates of future costs and timing of expenditures; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------|

|   | — | estimated future recoverable value of PP&E and goodwill and any associated impairment charges or recoveries; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------|

|   | — | estimated compensation expense under ARC’s share-based compensation plans including the PSU Plan that is based on an adjustment to the final number of PSU awards that eventually vest based on a performance multiplier. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 29 |
|--------------------|----|

----

| ARC Resources Ltd. | 30 |
|--------------------|----|

----

| ARC Resources Ltd. | 31 |
|--------------------|----|

----

| ARC Resources Ltd. | 32 |
|--------------------|----|

----

|   | — | availability of processing capacity; |
|--------|---------|--------------------------------------|

|   | — | availability and proximity of pipeline capacity; |
|--------|---------|--------------------------------------------------|

|   | — | availability of storage capacity; |
|--------|---------|-----------------------------------|

|   | — | supply of and demand for oil and natural gas; |
|--------|---------|-----------------------------------------------|

|   | — | availability of alternative fuel sources; |
|--------|---------|-------------------------------------------|

|   | — | effects of inclement weather; |
|--------|---------|-------------------------------|

|   | — | availability of drilling and related equipment; |
|--------|---------|-------------------------------------------------|

|   | — | unexpected cost increases; |
|--------|---------|----------------------------|

|   | — | accidental events; |
|--------|---------|--------------------|

|   | — | changes in regulations; and |
|--------|---------|-----------------------------|

|   | — | availability and productivity of skilled labour. |
|--------|---------|--------------------------------------------------|

| ARC Resources Ltd. | 33 |
|--------------------|----|

----

|   | — | IAS 36 "Impairment of Assets" has been amended to reduce the circumstances in which the recoverable amount of cash generating units "CGUs" is required to be disclosed and clarify the disclosures required when an impairment loss has been recognized or reversed in the period. The retrospective adoption of these amendments impact ARC's disclosures in the notes to the financial statements in periods when an impairment loss or impairment reversal is recognized. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | IAS 39 "Financial Instruments: Recognition and Measurement" has been amended to clarify that there would be no requirement to discontinue hedge accounting if a hedging derivative was novated, provided certain criteria are met. The retrospective adoption of the amendments does not have any impact on ARC's financial statements. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | — | IFRIC 21 "Levies" was developed by the IFRS Interpretations Committee ("IFRIC") and is applicable to all levies imposed by governments under legislation, other than outflows that are within the scope of other standards (e.g., IAS 12 "Income Taxes") and fines or other penalties for breaches of legislation. The interpretation clarifies that an entity recognizes a liability for a levy when the activity that triggers payment, as identified by the relevant legislation, occurs. It also clarifies that a levy liability is accrued progressively only if the activity that triggers payment occurs over a period of time, in accordance with the relevant legislation. Lastly, the interpretation clarifies that a liability should not be recognized before the specified minimum threshold to trigger that levy is reached. The retrospective adoption of this interpretation does not have any impact on ARC's financial statements. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 34 |
|--------------------|----|

----

| ARC Resources Ltd. | 35 |
|--------------------|----|

----

| ARC Resources Ltd. | 36 |
|--------------------|----|

----

| bbl       | barrel                                 |
|-----------|----------------------------------------|
| bbl/d     | barrels per day                        |
| mbbls     | thousand barrels                       |
| mmbbls    | million barrels                        |
|      |                                   |
| boe (1)   | barrels of oil equivalent              |
| boe/d (1) | barrels of oil equivalent per day      |
| mboe (1)  | thousands of barrels of oil equivalent |
| mmboe (1) | millions of barrels of oil equivalent  |
|      |                                   |
| mcf       | thousand cubic feet                    |
| mcf/d     | thousand cubic feet per day            |
| mmcf      | million cubic feet                     |
| mmcf/d    | million cubic feet per day             |
| bcf       | billion cubic feet                     |
|      |                                   |
| mmbtu     | million British Thermal Units          |
| GJ        | gigajoule                              |

| (1) | Where applicable in this MD&A natural gas has been converted to boe based on a conversion ratio of six mcf to one bbl. The boe rate is based on an energy equivalent conversion method primarily applicable at the burner tip. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the conversion ratio, utilizing a conversion ratio of 6:1 may be misleading as an indication of value. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARO      | asset retirement obligations                |
|----------|---------------------------------------------|
| DD&A | depreciation, depletion and amortization    |
| DRIP     | Dividend Reinvestment Program               |
| DSU      | Deferred Share Unit                         |
| E&E  | intangible exploration and evaluation       |
| GAAP     | generally accepted accounting principles    |
| G&A  | general and administrative                  |
| IFRS     | International Financial Reporting Standards |
| MSW      | Mixed Sweet Blend                           |
| NGLs     | natural gas liquids                         |
| NYMEX    | New York Mercantile Exchange                |
| PP&E | property, plant and equipment               |
| PSU      | Performance Share Unit                      |
| RSU      | Restricted Share Unit                       |
| SDP      | Stock Dividend Program                      |
| WTI      | West Texas Intermediate                     |

| ARC Resources Ltd. | 37 |
|--------------------|----|

----

| ANNUAL HISTORICAL REVIEW                                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|-----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| For the year ended December 31                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| ($ millions, except per share amounts)                          |   | 2014   |    |   | 2013   |   |    | 2012   |   |   | 2011    |   |   | 2010   |    |
| FINANCIAL                                                       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Sales of crude oil, natural gas, condensate and NGLs            |   |   | 2,107.7 |   |   |   | 1,624.3 |   |   |   | 1,389.4 |   |   |   | 1,438.2 |   |   |   | 1,213.7 |   |
| Per share (1)                                                   |   |   | 6.66    |   |   |   | 5.21    |   |   |   | 4.67    |   |   |   | 5.02    |   |   |   | 4.67 |   |
| Per share, diluted (1)                                          |   |   | 6.64    |   |   |   | 5.21    |   |   |   | 4.67    |   |   |   | 5.02    |   |   |   | 4.59 |   |
| Funds from operations (2)                                       |   |   | 1,124.0 |   |   |   | 861.8   |   |   |   | 719.8   |   |   |   | 844.3   |   |   |   | 667.0 |   |
| Per share (1)                                                   |   |   | 3.55    |   |   |   | 2.77    |   |   |   | 2.42    |   |   |   | 2.95    |   |   |   | 2.57 |   |
| Per share, diluted (1)                                          |   |   | 3.54    |   |   |   | 2.76    |   |   |   | 2.42    |   |   |   | 2.95    |   |   |   | 2.52 |   |
| Net income and comprehensive income                             |   |   | 380.8   |   |   |   | 240.7   |   |   |   | 139.2   |   |   |   | 287.0   |   |   |   | 212.2 |   |
| Per share (1)                                                   |   |   | 1.20    |   |   |   | 0.77    |   |   |   | 0.47    |   |   |   | 1.00    |   |   |   | 0.82 |   |
| Per share, diluted (1)                                          |   |   | 1.20    |   |   |   | 0.77    |   |   |   | 0.47    |   |   |   | 1.00    |   |   |   | 0.80 |   |
| Operating income (3)                                            |   |   | 390.3   |   |   |   | 224.9   |   |   |   | 163.1   |   |   |   | 293.5   |   |   |   | 235.6 |   |
| Per share (1)                                                   |   |   | 1.23    |   |   |   | 0.72    |   |   |   | 0.55    |   |   |   | 1.02    |   |   |   | 0.91 |   |
| Per share, diluted (1)                                          |   |   | 1.23    |   |   |   | 0.72    |   |   |   | 0.55    |   |   |   | 1.02    |   |   |   | 0.88 |   |
| Dividends declared                                              |   |   | 380.2   |   |   |   | 374.0   |   |   |   | 357.4   |   |   |   | 344.0   |   |   |   | 313.5 |   |
| Per share (1)                                                   |   |   | 1.20    |   |   |   | 1.20    |   |   |   | 1.20    |   |   |   | 1.20    |   |   |   | 1.20 |   |
| Total assets                                                    |   |   | 6,325.5 |   |   |   | 5,736.0 |   |   |   | 5,627.1 |   |   |   | 5,323.9 |   |   |   | 5,060.1 |   |
| Total liabilities                                               |   |   | 2,773.7 |   |   |   | 2,339.9 |   |   |   | 2,230.4 |   |   |   | 2,162.1 |   |   |   | 1,947.7 |   |
| Net debt outstanding (4)                                        |   |   | 1,255.9 |   |   |   | 1,011.5 |   |   |   | 745.6   |   |   |   | 909.7   |   |   |   | 871.0 |   |
| Weighted average shares outstanding                             |   |   | 316.6   |   |   |   | 311.5   |   |   |   | 297.2   |   |   |   | 286.6   |   |   |   | 259.9 |   |
| Weighted average shares outstanding, diluted                    |   |   | 317.2   |   |   |   | 311.9   |   |   |   | 297.2   |   |   |   | 286.6   |   |   |   | 264.2 |   |
| Shares outstanding, end of period                               |   |   | 319.4   |   |   |   | 314.1   |   |   |   | 308.9   |   |   |   | 288.9   |   |   |   | 284.4 |   |
| CAPITAL EXPENDITURES                                            |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Geological and geophysical                                      |   |   | 17.6    |   |   |   | 19.2    |   |   |   | 31.8    |   |   |   | 25.9    |   |   |   | 16.0 |   |
| Drilling and completions                                        |   |   | 660.0   |   |   |   | 568.4   |   |   |   | 429.8   |   |   |   | 456.5   |   |   |   | 358.5 |   |
| Plant and facilities                                            |   |   | 261.4   |   |   |   | 267.7   |   |   |   | 131.6   |   |   |   | 165.1   |   |   |   | 131.4 |   |
| Other                                                           |   |   | 6.5     |   |   |   | 4.6     |   |   |   | 5.3     |   |   |   | 3.6     |   |   |   | 24.1 |   |
| Total capital expenditures                                      |   |   | 945.5   |   |   |   | 859.9   |   |   |   | 598.5   |   |   |   | 651.1   |   |   |   | 530.0 |   |
| Undeveloped land purchased at Crown land sales                  |   |   | 62.3    |   |   |   | 14.3    |   |   |   | 9.5     |   |   |   | 74.9    |   |   |   | 60.9 |   |
| Total capital expenditures including undeveloped land purchases |   |   | 1,007.8 |   |   |   | 874.2   |   |   |   | 608.0   |   |   |   | 726.0   |   |   |   | 590.9 |   |
| Acquisitions                                                    |   |   | 73.5    |   |   |   | 36.4    |   |   |   | 36.5    |   |   |   | 57.1    |   |   |   | 8.9 |   |
| Dispositions                                                    |   |   | (39.3   | )      |   |   | (89.8   | )      |   |   | (4.1    | )      |   |   | (168.4  | ) |   |   | (3.9 | ) |
| Corporate acquisitions                                          |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 652.1 |   |
| Total capital expenditures and net acquisitions                 |   |   | 1,042.0 |   |   |   | 820.8   |   |   |   | 640.4   |   |   |   | 614.7   |   |   |   | 1,248.0 |   |
| OPERATING                                                       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Production                                                      |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Crude oil (bbl/d)                                               |   |   | 36,525  |   |   |   | 32,784  |   |   |   | 31,454  |   |   |   | 27,158  |   |   |   | 27,341 |   |
| Condensate (bbl/d)                                              |   |   | 3,667   |   |   |   | 2,251   |   |   |   | 2,217   |   |   |   | 2,052   |   |   |   | 1,617 |   |
| Natural gas (mmcf/d)                                            |   |   | 406.1   |   |   |   | 349.4   |   |   |   | 342.9   |   |   |   | 310.6   |   |   |   | 254.2 |   |
| NGLs (bbl/d)                                                    |   |   | 4,518   |   |   |   | 2,811   |   |   |   | 2,728   |   |   |   | 2,444   |   |   |   | 2,628 |   |
| Total (boe/d)                                                   |   |   | 112,387 |   |   |   | 96,087  |   |   |   | 93,546  |   |   |   | 83,416  |   |   |   | 73,954 |   |
| Average realized prices, prior to hedging                       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Crude oil ($/bbl)                                               |   |   | 90.64   |   |   |   | 88.90   |   |   |   | 82.03   |   |   |   | 89.51   |   |   |   | 73.85 |   |
| Condensate ($/bbl)                                              |   |   | 93.81   |   |   |   | 94.13   |   |   |   | 92.63   |   |   |   | 96.07   |   |   |   | 77.40 |   |
| Natural gas ($/mcf)                                             |   |   | 4.76    |   |   |   | 3.45    |   |   |   | 2.62    |   |   |   | 3.83    |   |   |   | 4.21 |   |
| NGLs ($/bbl)                                                    |   |   | 39.45   |   |   |   | 36.25   |   |   |   | 38.11   |   |   |   | 47.53   |   |   |   | 39.57 |   |
| Oil equivalent ($/boe)                                          |   |   | 51.31   |   |   |   | 46.31   |   |   |   | 40.50   |   |   |   | 47.15   |   |   |   | 44.88 |   |
| RESERVES (company gross) (5)                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Proved plus probable reserves                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Crude oil and NGLs (mbbl)                                       |   |   | 192,489 |   |   |   | 194,064 |   |   |   | 185,548 |   |   |   | 170,153 |   |   |   | 165,963 |   |
| Natural gas (bcf)                                               |   |   | 2,881.6 |   |   |   | 2,638.8 |   |   |   | 2,528.6 |   |   |   | 2,413.3 |   |   |   | 1,914.9 |   |
| Total (mboe)                                                    |   |   | 672,748 |   |   |   | 633,864 |   |   |   | 606,982 |   |   |   | 572,374 |   |   |   | 485,121 |   |
| TRADING STATISTICS ($, based on intra-day trading)              |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| High                                                            |   |   | 33.68   |   |   |   | 29.95   |   |   |   | 26.25   |   |   |   | 28.67   |   |   |   | 26.04 |   |
| Low                                                             |   |   | 22.70   |   |   |   | 23.12   |   |   |   | 18.36   |   |   |   | 19.40   |   |   |   | 18.77 |   |
| Close                                                           |   |   | 25.16   |   |   |   | 29.57   |   |   |   | 24.44   |   |   |   | 25.10   |   |   |   | 25.41 |   |
| Average daily volume (thousands)                                |   |   | 1,344   |   |   |   | 1,064   |   |   |   | 1,356   |   |   |   | 1,251   |   |   |   | 1,197 |   |

| (1) | Per share amounts (with the exception of dividends per share which are based on the number of shares outstanding at each dividend record date) are based on weighted average shares outstanding during the period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Refer to the sections entitled "Funds from Operations" and “Additional GAAP Measures” contained within this MD&A. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (3) | Refer to the sections entitled "Operating Income" and “Non-GAAP Measures” contained within this MD&A. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| (4) | Refer to the sections entitled "Capitalization, Financial Resources and Liquidity" and “Additional GAAP Measures” contained within this MD&A. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Company gross reserves are the gross interest reserves prior to the deduction of royalty burdens. |
|-----|---------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 38 |
|--------------------|----|

----

| ($ millions, except per share amounts)                                                        |   | 2014   |    |   | 2013   |   |
|-----------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| FINANCIAL                                                                                     |   |   | Q4      |   |   |   | Q3 |   |   |   | Q2 |   |   |   | Q1 |   |   |   | Q4 |   |   |   | Q3 |   |   |   | Q2 |   |   |   | Q1 |   |
| Sales of crude oil, natural gas, condensate,    NGLs and other income               |   |   | 454.1   |   |   |   | 535.2 |   |   |   | 567.0 |   |   |   | 551.4 |   |   |   | 425.0 |   |   |   | 417.4 |   |   |   | 403.4 |   |   |   | 378.5 |   |
| Per share, basic (1)                                                                          |   |   | 1.43    |   |   |   | 1.69 |   |   |   | 1.79 |   |   |   | 1.75 |   |   |   | 1.36 |   |   |   | 1.34 |   |   |   | 1.30 |   |   |   | 1.22 |   |
| Per share, diluted (1)                                                                        |   |   | 1.42    |   |   |   | 1.68 |   |   |   | 1.79 |   |   |   | 1.75 |   |   |   | 1.35 |   |   |   | 1.34 |   |   |   | 1.30 |   |   |   | 1.22 |   |
| Funds from operations (2)                                                                     |   |   | 251.7   |   |   |   | 284.2 |   |   |   | 295.8 |   |   |   | 292.3 |   |   |   | 237.8 |   |   |   | 220.4 |   |   |   | 201.2 |   |   |   | 202.4 |   |
| Per share, basic (1)                                                                          |   |   | 0.79    |   |   |   | 0.90 |   |   |   | 0.94 |   |   |   | 0.93 |   |   |   | 0.76 |   |   |   | 0.71 |   |   |   | 0.65 |   |   |   | 0.65 |   |
| Per share, diluted (1)                                                                        |   |   | 0.79    |   |   |   | 0.89 |   |   |   | 0.93 |   |   |   | 0.93 |   |   |   | 0.76 |   |   |   | 0.71 |   |   |   | 0.65 |   |   |   | 0.65 |   |
| Net income and comprehensive income                                                           |   |   | 113.7   |   |   |   | 90.3 |   |   |   | 147.4 |   |   |   | 29.4 |   |   |   | 13.6 |   |   |   | 86.9 |   |   |   | 93.3 |   |   |   | 46.9 |   |
| Per share, basic (1)                                                                          |   |   | 0.36    |   |   |   | 0.28 |   |   |   | 0.47 |   |   |   | 0.09 |   |   |   | 0.04 |   |   |   | 0.28 |   |   |   | 0.30 |   |   |   | 0.15 |   |
| Per share, diluted (1)                                                                        |   |   | 0.36    |   |   |   | 0.28 |   |   |   | 0.47 |   |   |   | 0.09 |   |   |   | 0.04 |   |   |   | 0.28 |   |   |   | 0.30 |   |   |   | 0.15 |   |
| Operating income (3)                                                                          |   |   | 64.5    |   |   |   | 90.1 |   |   |   | 118.7 |   |   |   | 117.0 |   |   |   | 50.0 |   |   |   | 73.3 |   |   |   | 53.9 |   |   |   | 47.6 |   |
| Per share, basic (1)                                                                          |   |   | 0.20    |   |   |   | 0.28 |   |   |   | 0.37 |   |   |   | 0.37 |   |   |   | 0.16 |   |   |   | 0.23 |   |   |   | 0.17 |   |   |   | 0.15 |   |
| Per share, diluted (1)                                                                        |   |   | 0.20    |   |   |   | 0.28 |   |   |   | 0.37 |   |   |   | 0.37 |   |   |   | 0.16 |   |   |   | 0.23 |   |   |   | 0.17 |   |   |   | 0.15 |   |
| Dividends declared                                                                            |   |   | 95.7    |   |   |   | 95.2 |   |   |   | 94.8 |   |   |   | 94.5 |   |   |   | 94.0 |   |   |   | 93.7 |   |   |   | 93.4 |   |   |   | 92.9 |   |
| Per share (1)                                                                                 |   |   | 0.30    |   |   |   | 0.30 |   |   |   | 0.30 |   |   |   | 0.30 |   |   |   | 0.30 |   |   |   | 0.30 |   |   |   | 0.30 |   |   |   | 0.30 |   |
| Total assets                                                                                  |   |   | 6,325.5 |   |   |   | 6,095.5 |   |   |   | 5,988.7 |   |   |   | 5,949.5 |   |   |   | 5,736.0 |   |   |   | 5,599.2 |   |   |   | 5,548.1 |   |   |   | 5,612.7 |   |
| Total liabilities                                                                             |   |   | 2,773.7 |   |   |   | 2,603.5 |   |   |   | 2,531.1 |   |   |   | 2,580.7 |   |   |   | 2,339.9 |   |   |   | 2,156.6 |   |   |   | 2,132.6 |   |   |   | 2,229.9 |   |
| Net debt outstanding (4)                                                                      |   |   | 1,255.9 |   |   |   | 1,152.8 |   |   |   | 1,061.9 |   |   |   | 1,096.0 |   |   |   | 1,011.5 |   |   |   | 936.5 |   |   |   | 883.7 |   |   |   | 855.1 |   |
| Weighted average shares outstanding                                                           |   |   | 318.6   |   |   |   | 317.2 |   |   |   | 315.9 |   |   |   | 314.7 |   |   |   | 313.5 |   |   |   | 312.2 |   |   |   | 310.9 |   |   |   | 309.6 |   |
| Weighted average shares outstanding, diluted                                                  |   |   | 319.1   |   |   |   | 317.8 |   |   |   | 316.6 |   |   |   | 315.2 |   |   |   | 313.9 |   |   |   | 312.5 |   |   |   | 311.2 |   |   |   | 309.8 |   |
| Shares outstanding, end of period                                                             |   |   | 319.4   |   |   |   | 317.8 |   |   |   | 316.5 |   |   |   | 315.3 |   |   |   | 314.1 |   |   |   | 312.8 |   |   |   | 311.5 |   |   |   | 310.2 |   |
| CAPITAL EXPENDITURES                                                                          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Geological and geophysical                                                                    |   |   | 4.7     |   |   |   | 3.5 |   |   |   | 3.5 |   |   |   | 5.9 |   |   |   | 6.6 |   |   |   | 4.5 |   |   |   | 3.1 |   |   |   | 5.0 |   |
| Drilling and completions                                                                      |   |   | 164.4   |   |   |   | 154.9 |   |   |   | 181.6 |   |   |   | 159.1 |   |   |   | 140.9 |   |   |   | 179.2 |   |   |   | 106.7 |   |   |   | 141.6 |   |
| Plant and facilities                                                                          |   |   | 78.2    |   |   |   | 58.8 |   |   |   | 49.4 |   |   |   | 75.0 |   |   |   | 58.8 |   |   |   | 65.6 |   |   |   | 59.8 |   |   |   | 83.5 |   |
| Administrative assets                                                                         |   |   | 2.0     |   |   |   | 1.0 |   |   |   | 1.6 |   |   |   | 2.0 |   |   |   | 1.4 |   |   |   | 1.0 |   |   |   | 1.1 |   |   |   | 1.1 |   |
| Total capital expenditures                                                                    |   |   | 249.3   |   |   |   | 218.2 |   |   |   | 236.1 |   |   |   | 242.0 |   |   |   | 207.7 |   |   |   | 250.3 |   |   |   | 170.7 |   |   |   | 231.2 |   |
| Undeveloped land purchased at Crown land    sales                                   |   |   | 18.0    |   |   |   | 21.9 |   |   |   | 16.6 |   |   |   | 5.8 |   |   |   | 3.5 |   |   |   | 8.9 |   |   |   | 0.7 |   |   |   | 1.2 |   |
| Total capital expenditures including    undeveloped land purchases                  |   |   | 267.3   |   |   |   | 240.1 |   |   |   | 252.7 |   |   |   | 247.8 |   |   |   | 211.2 |   |   |   | 259.2 |   |   |   | 171.4 |   |   |   | 232.4 |   |
| Acquisitions                                                                                  |   |   | — |   |   |   | 37.3 |   |   |   | 5.5 |   |   |   | 30.7 |   |   |   | 12.4 |   |   |   | 12.6 |   |   |   | 2.4 |   |   |   | 9.0 |   |
| Dispositions                                                                                  |   |   | (2.4    | )      |   |   | (5.1 | ) |   |   | (31.8 | ) |   |   | — |   |   |   | 0.5 |   |   |   | (53.6 | ) |   |   | (28.2 | ) |   |   | (8.5 | ) |
| Total capital expenditures, land purchases and    net acquisitions and dispositions |   |   | 264.9   |   |   |   | 272.3 |   |   |   | 226.4 |   |   |   | 278.5 |   |   |   | 224.1 |   |   |   | 218.2 |   |   |   | 145.6 |   |   |   | 232.9 |   |
| OPERATING                                                                                     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production                                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil (bbl/d)                                                                             |   |   | 37,442  |   |   |   | 35,871 |   |   |   | 35,317 |   |   |   | 37,478 |   |   |   | 35,542 |   |   |   | 31,438 |   |   |   | 31,635 |   |   |   | 32,505 |   |
| Condensate (bbl/d)                                                                            |   |   | 3,448   |   |   |   | 3,862 |   |   |   | 4,462 |   |   |   | 2,887 |   |   |   | 2,580 |   |   |   | 2,235 |   |   |   | 2,150 |   |   |   | 2,032 |   |
| Natural gas (mmcf/d)                                                                          |   |   | 432.1   |   |   |   | 424.5 |   |   |   | 397.2 |   |   |   | 369.6 |   |   |   | 359.4 |   |   |   | 348.9 |   |   |   | 340.8 |   |   |   | 348.6 |   |
| NGLs (bbl/d)                                                                                  |   |   | 5,075   |   |   |   | 5,056 |   |   |   | 4,179 |   |   |   | 3,743 |   |   |   | 2,868 |   |   |   | 2,687 |   |   |   | 2,859 |   |   |   | 2,831 |   |
| Total (boe/d)                                                                                 |   |   | 117,986 |   |   |   | 115,530 |   |   |   | 110,165 |   |   |   | 105,699 |   |   |   | 100,883 |   |   |   | 94,515 |   |   |   | 93,436 |   |   |   | 95,472 |   |
| Average realized prices, prior to hedging                                                     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude oil ($/bbl)                                                                             |   |   | 72.49   |   |   |   | 93.34 |   |   |   | 102.14 |   |   |   | 95.58 |   |   |   | 82.85 |   |   |   | 101.43 |   |   |   | 89.18 |   |   |   | 83.00 |   |
| Condensate ($/bbl)                                                                            |   |   | 74.04   |   |   |   | 95.55 |   |   |   | 103.72 |   |   |   | 100.11 |   |   |   | 88.72 |   |   |   | 96.70 |   |   |   | 91.08 |   |   |   | 101.53 |   |
| Natural gas ($/mcf)                                                                           |   |   | 4.15    |   |   |   | 4.46 |   |   |   | 4.99 |   |   |   | 5.60 |   |   |   | 3.61 |   |   |   | 2.94 |   |   |   | 3.89 |   |   |   | 3.37 |   |
| NGLs ($/bbl)                                                                                  |   |   | 32.69   |   |   |   | 39.61 |   |   |   | 39.51 |   |   |   | 48.54 |   |   |   | 41.47 |   |   |   | 36.80 |   |   |   | 29.25 |   |   |   | 37.48 |   |
| Oil equivalent ($/boe)                                                                        |   |   | 41.78   |   |   |   | 50.28 |   |   |   | 56.44 |   |   |   | 57.91 |   |   |   | 45.51 |   |   |   | 47.94 |   |   |   | 47.36 |   |   |   | 43.84 |   |
| TRADING STATISTICS                                                                            |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ($, based on intra-day trading)                                                               |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                                                                                          |   |   | 29.85   |   |   |   | 32.60 |   |   |   | 33.68 |   |   |   | 30.66 |   |   |   | 29.95 |   |   |   | 28.65 |   |   |   | 28.90 |   |   |   | 27.64 |   |
| Low                                                                                           |   |   | 22.70   |   |   |   | 28.54 |   |   |   | 30.30 |   |   |   | 27.52 |   |   |   | 25.68 |   |   |   | 24.71 |   |   |   | 25.73 |   |   |   | 23.12 |   |
| Close                                                                                         |   |   | 25.16   |   |   |   | 29.55 |   |   |   | 32.49 |   |   |   | 30.45 |   |   |   | 29.57 |   |   |   | 26.27 |   |   |   | 27.53 |   |   |   | 26.84 |   |
| Average daily volume (thousands)                                                              |   |   | 1,886   |   |   |   | 1,205 |   |   |   | 1,037 |   |   |   | 1,248 |   |   |   | 1,030 |   |   |   | 1,004 |   |   |   | 1,074 |   |   |   | 1,151 |   |

| (1) | Per share amounts (with the exception of dividends per share which are based on the number of shares outstanding at each dividend record date) are based on weighted average shares outstanding during the period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Refer to the sections entitled "Funds from Operations" and “Additional GAAP Measures” contained within this MD&A. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (3) | Refer to the sections entitled "Operating Income" and “Non-GAAP Measures” contained within this MD&A. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| (4) | Refer to the sections entitled "Capitalization, Financial Resources and Liquidity" and “Additional GAAP Measures” contained within this MD&A. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARC Resources Ltd. | 39 |
|--------------------|----|